Citizens New Flood Insurance Rules: What Florida Homeowners Need to Know. Please don't include text in this.

Florida agents are now on the front lines of one of the biggest eligibility shifts in Citizens Property Insurance history: mandatory flood insurance for most personal residential policies with wind coverage. This change, driven by recent legislation, impacts how agents quote, bind, renew, and service Citizens business across the state.

For producers and account managers, understanding who must carry flood, what limits are required, and which documents must be collected is now essential to retaining Citizens customers and avoiding last‑minute renewal disruptions.

Why Flood Is Now Tied to Citizens Coverage

The Florida Legislature directed Citizens to reduce its exposure to flood losses and shift more of that risk to separate, stand‑alone flood policies. Practically, that means Citizens does not provide flood coverage and will only insure risks that also maintain qualifying flood insurance.

For agents, this turns flood from a “nice‑to‑have” conversation into a core eligibility requirement. Your workflow now needs to assume that any Citizens personal lines policy with wind coverage will require a flood discussion, placement, and documentation.

Which Clients Are Impacted (Agents’ “Who and When” Checklist)

You can think about the requirement in two buckets: clients inside FEMA’s Special Flood Hazard Areas (SFHAs) and those outside SFHAs.

• In SFHAs (zones like A, AE, AO, AH, V, VE, etc.):
• New Citizens policies with wind: flood insurance required at new business.
• Renewals: flood insurance required by the renewal effective date.
• Outside SFHAs: the mandate is phased in by dwelling value (Coverage A) and effective date:
• Effective 01/01/2024: Properties with Coverage A of $600,000 or more.
• Effective 01/01/2025: Properties with Coverage A of $500,000 or more.
• Effective 01/01/2026: Properties with Coverage A of $400,000 or more.
• Effective 01/01/2027: All remaining personal residential policies with wind, regardless of value.

In practice, every year more of your book becomes in‑scope. Building an internal list or report of Citizens accounts by Coverage A and renewal date is now a high‑value retention task.

Required Flood Limits: How Much Coverage Agents Must Place

When you are placing flood for a Citizens client, the basic rule is “match Citizens or use NFIP max.” For most scenarios:

• Dwelling policies (HO‑3, DP‑3, etc.)
• Flood building and contents limits should be equal to or greater than Citizens Coverage A and Coverage C.
• If those limits are not available through NFIP, the NFIP maximums are acceptable (e.g., $250,000 building and $100,000 contents under current NFIP caps).
• Condo unit owners with Coverage A and C on Citizens
• Aim to match Citizens’ Coverage A and C with flood building/contents where available, or use the maximum NFIP limits if they’re lower than Citizens
• Tenants / contents‑only risks
• Flood contents limit should be equal to or greater than Citizens Coverage C.

As an agent, it’s critical to audit existing flood policies before renewal. If limits are below Citizens’ requirements, you must quote an increase, adjust Citizens coverages, or clearly document the client’s decisions so you can still meet Citizens’ minimum rules.

Documentation Agents Must Collect and Upload

Citizens’ flood rules are not just about placement—they are also document‑driven. To keep a risk eligible, you need both of the following in the file and submitted:

• Policyholder Affirmation Regarding Flood Insurance (CIT FW01)
• Signed by the insured.
• Confirms they understand Citizens does not provide flood coverage and that they agree to obtain and maintain flood insurance while insured with Citizens.
• Proof of Flood Coverage, which can be:
• A copy of the flood insurance application plus proof of payment (useful when a 30‑day waiting period applies).
• A copy of the flood policy declarations page.
• Proof of an acceptable flood endorsement on an underlying ex‑wind/multiperil policy for Citizens wind‑only accounts.

Building these into your standard new‑business and renewal checklists (or your AMS task templates) will prevent avoidable non‑renewals and underwriting pends.

Handling Common Client Objections (Agent Talking Points)

Agents are now fielding two recurring pushbacks: “I’m not in a flood zone” and “I already have flood, why isn’t it enough?” Your responses can be framed around compliance and protection.

• “I’m not in a flood zone.”
• Everyone in Florida is in a flood zone, your property may be located in a minimal to moderate risk flood zone.
• Clarify that the new rule is based on Citizens eligibility, not just lender flood insurance requirements.
• Proof of Flood Coverage, which can be:
• “I already have flood.”
• Review the policy’s building and contents limits.
• If they do not match or meet Citizens’ minimums, explain what needs to change (limit increase, adjusting Citizens limits, or using NFIP max).
• Remind them you also need the signed flood affirmation form and current proof of coverage to keep their Citizens policy eligible.

Positioning this as a compliance and financial‑protection issue helps move the conversation from “extra cost” to “essential risk transfer” and “required for keeping Citizens.”