Communities in southwest Florida will continue to receive discounts on National Flood Insurance, at least for the time being, after federal officials granted a temporary reprieve to punitive measures resulting from inappropriate rebuilding in floodplains.
“The Village of Estero was notified July 19 that FEMA will maintain Estero’s Community Rating System (CRS) rating of 6 until at least April 1, 2025,” said a message posted by Estero officials following the announcement last week. “This means residents with policies issued under the National Flood Insurance Program (NFIP) will maintain the discount rate of 20% on their insurance premiums for the time being.”
Estero is one of five incorporated and unincorporated areas in Lee County that are at risk of losing their community rating discount. The Federal Emergency Management Agency raised concerns in March when it informed communities that their discounts would be reduced because homes and businesses were permitted to rebuild in low-lying areas despite having suffered more than 50% damage from Hurricane Ian flooding.
According to news reports and local officials, the county and cities have since worked to demonstrate that some reconstruction was legitimately approved in accordance with FEMA guidelines. Local insurance brokers acquainted with the procedure stated that one town attempted to demonstrate enhanced attentiveness by requiring permits for work that does not typically require construction permits, such as new carpets. This has resulted in delays in reconstructing some houses.
All FEMA issues have not been handled. FEMA announced in a letter last week that the county, municipalities, and cities have four months to provide further information and fix issues.
“FEMA concluded that unincorporated Lee County residents holding NFIP policies will continue to get a 25% discount while the county and FEMA work on a plan to address some ongoing difficulties. “That plan will be due on November 18,” according to a statement posted by Lee County officials.
FEMA’s warning to Cape Coral outlined several issues that the city of 216,000 must address.
- A lack of permits and records for development in the Special Flood Hazard Area.
- Only about 40% of permit package information was complete.
- Some 71 of 206 permit packages submitted did not include permits for structures that had sustained documented damage.
The city must submit a plan outlining timelines and methods to resolve all violations, or it will face probation next spring and the loss of all community rating reductions. Without the savings, property owners’ flood insurance premiums might rise by several hundred dollars each year on average.