Buyers closing October 1st or after should understand upcoming flood insurance changes. The yearly rates for flood insurance policies under FEMA’s National Flood Insurance Program (NFIP) will change on October 1 per the new Risk Rating 2.0 system.

Important Dates:

  • Phase I: Starting October 1, 2021, new NFIP policies will be subject to the 2.0 rating method.
  • Phase II: All NFIP policies not included in Phase I will be subject to the new rating method on or after April 1, 2022.

What You Need to Know:

  • It is expected that most homeowners in our area will experience rate increases due to their coastal exposure and high value properties.
  • Premium increases will transition gradually and will be capped at 18% annually until the full-risk rate for the property is reached. FEMA refers to the 18% gradual increase as the Glide Path.
  • Current NFIP rates are not grandfathered in; however, if a buyer confirms the seller has an existing NFIP flood policy, a new policy can be written using the seller’s Glide Path. The seller will need to provide a copy of their current policy Declarations page; the minimum information needed includes the flood insurance carrier, policy number, expiration date, and original policy date.
  • Buyers closing on a property without an existing flood policy should know that, starting October 1, rates will be considerably higher than current flood rates as the 18% rate cap does not apply. This significantly higher pricing also applies to new construction.

Frequently Asked Questions:

Is it true that Flood Elevation Certificates are no longer required when purchasing flood insurance?

  •  Yes, while that is true we are finding that homes with a flood elevation certificate showing the property positively elevated are receiving lower pricing.

How can my buyer secure preferred pricing for their flood insurance?

  •  We recommend confirming the seller has a flood insurance policy in place through the NFIP and obtaining a copy of that policy which will enable the buyer to obtain preferred pricing for their new flood policy.
  • In addition, buyers can review policy limits and deductibles to further customize the policy.

What if the seller does not have a flood policy in place?

  • In addition to coverage through the NFIP, new home buyers can purchase their coverage through Private Flood markets which have been competitive for a good number of property owners in our area.

Flood insurance is an essential piece of overall property protection. It is important to consult with a trusted advisor who can review carrier options and coverage and can offer the best pricing for your clients.

Andrea Pelletier, CPRIA, CPIA is Client Advisor and Partner at Gulfshore Insurance specializing in Private Risk Services. Andrea works with successful individuals and their families on creating and customizing package insurance solutions in the areas of luxury homes, car collections, jewelry, fine arts, watercraft, and personal excess liability. Comments and questions are welcome at

Gulfshore Insurance is a Naples, Florida based insurance agency specializing in home and homeowners insurance, car and auto insurance, boat and yacht insurance, property insurance, umbrella insurance, valuables insurance for fine art, jewelry, wine, and more. Navigating insurance requires an experienced and trusted insurance agent who understands your high net worth risks and exposures. Gulfshore Insurance services Naples, North Naples, Port Royal, Park Shore, Pelican Bay, The Moorings, Naples Beach, Marco Island, Bonita Springs, Sanibel Island, Captiva, Fort Myers, Sarasota, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.

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