FLORIDA – With hurricane season weeks away, Florida homeowners are watching Washington amid uncertainty over the future of FEMA’s National Flood Insurance Program, which helps millions recover after floods.
Residents in flood-prone neighborhoods such as San Marco in Jacksonville said they can’t afford to lose coverage as heavy rain and rising water remain recurring problems. A recent storm prompted reports of flooding reaching up to the front doors of homes in the area, according to a News4JAX video.
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The National Flood Insurance Program paid out more than $7.5 billion in claims to Floridians in 2024, but a proposal Congress is expected to consider would shift more responsibility to states and private insurers.
Mark Friedlander of the Insurance Information Institute said he is concerned privatization could eliminate the program’s Community Rating System discounts, potentially increasing premiums on average and widening what he called an “insurance gap.” Friedlander said private flood insurance is not available in all parts of the country, which could leave some areas without coverage.
He noted that about 20% of Floridians currently carry flood insurance, meaning roughly 80% do not, even as flooding occurs across the state.
Supporters of privatizing flood insurance argue the move would reduce FEMA’s federal debt and create more financial stability for the agency. Congress is expected to vote on the proposal before Sept. 30, when the program’s current authorization expires.