Flood zones in Cape Coral, Florida

We get a lot of questions about flood zones in SW Florida, especially Cape Coral, Florida. This gets sort of tricky because FEMA changes the maps often based up new information. When I first moved to Cape Coral many years ago way less of the area was in a main flood area. Not many homes required flood insurance. Factors have since changed and now a larger portion of our city does fall into a flood zone.

In 2021 a flood insurance increase was approved. The government put in a restrictions to only allow an 18% per year increase for existing policy owners which helped many with premiums.  Obviously, it did not help those who didn’t have a policy and now needed one. They were rated on the new higher premiums. 

Here are more details on that change: https://www.fema.gov/flood-insurance/risk-rating

A few things to know about purchasing a flood policy in the area:

If the current homeowner has an existing policy it could be assumable at those current lower premium rates.

Even if you are purchasing a home outside of a current flood zone it may interest you to enact a flood policy now. Why? A couple of reasons. 1) the flood map could change and then your premium would already be set at a lower rate. 2) you never know how a flood could happen even if your home isn’t currently rated in a flood zone and now you’ll be covered. 3) The rates for homes not in a current flood zone are very reasonable compared to those in a high flood-rated zone. We still live in a high storm-risk area.

Did you know that it is possible to get your property rezoned? If your house is at a higher elevation for example there is a process where you can ask for it to be removed. There are companies that can handle the process for you at a nominal fee or you could request it on your own. You can learn more about this option here: https://www.fema.gov/flood-maps/change-your-flood-zone/lomr-clomr https://www.fema.gov/flood-maps/change-your-flood-zone

Keep in mind that if you choose to not obtain flood insurance you could be leaving yourself open to risk. Saving a couple of thousand of dollars may not be worth it. Definitely speak with your insurance carrier to understand the risk reward. Also, keep in mind that when they re-do the map you could be placed right back into a high-risk zone again. This isn’t permanent as the map continues to change.

I often have customers opt out of a flood insurance policy when paying cash for a property as this is now optional since there is no lender requiring a flood policy Again, choose this at your own risk after researching and speaking with a reputable insurance provider.

Sometimes you see something that doesn’t really make sense. Like 1 house on the whole street not in a flood zone when everyone else is or vice versa. So don’t assume and actually check the map and ask your insurance carrier for advice. 

My final advice would be to read the information directly on the FEMA website above or speak with your insurance provider versus assuming random articles on the internet, or news are true. Obtain 2-3 quotes and be sure you are comparing similar policies. You can obtain policies at different values and include/exclude personal property so it's important to understand what is covered. 

I am not an insurance provider and am writing this from the perspective of a consumer just like you and from experiences we’ve been seeing lately through our customers. If you would like a few insurance agents to obtain quotes from I am happy to share a few of our favorites so you can make an informed decision. 

Written by Susan Milner, broker/owner of Florida Future Realty, Inc.