FEMA recently announced a policy update to the National Flood Insurance Program (NFIP), offering a more manageable payment option that could make flood insurance more affordable for many Floridians. Under this change, homeowners can now opt to pay their flood insurance premiums in monthly installments instead of a single annual lump sum.
“Traditionally, premiums were paid annually, but FEMA is now allowing NFIP policyholders to spread their payments out monthly,” according to a FEMA press release on November 4.
This change comes in the wake of a tough hurricane season, with many Florida residents, including those impacted by Hurricanes Debby, Helene, and Milton dealing with costly flood damage.
READ: Reminder: Citizens Insurance Will Require All Homeowners to Purchase Flood Insurance – Even Houses Not in Flood Zones
Ken Kidd, a 72-year-old retired veteran from Belmar Shores, is still recovering six weeks after Hurricane Helene flooded his home. With a limited $25,000 flood insurance policy through the NFIP, he received only minimal coverage because he’d opted for a basic plan on his fixed income, paying a $400 annual premium to meet his line of credit’s insurance requirement.
“We’ve never flooded here before,” Kidd said, “so I took the minimum. Now I’ll have to sell as is.”
Jake Holehouse, CEO of HH Insurance Group in St. Pete, sees this shift by FEMA as a game-changer for homeowners facing high property insurance costs in Florida. “For many, finding $500 or $1,000 upfront is tough. With the new monthly option, if you can pay $50 or $100 upfront and continue monthly, it becomes much more affordable,” he explained.
The NFIP monthly payment plan will officially roll out in January 2025.
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(Image credit: Meteorology Matters / Rob Jones)
St. Pete-Clearwater Sun 
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