Florida flood-insurance gap widens as record number skip coverage despite repeated hurricanes

Florida homeowners are facing a growing vulnerability as a record share of households do not carry flood insurance even as the state remains on the front lines of severe weather. Just under 20 percent of Florida's 11 million homes have some form of flood insurance, according to FEMA, with coverage far lower in central Florida—just over six percent.

Flooding is not included in standard homeowners insurance and must be bought separately, a reality that many residents still underestimate. The Insurance Information Institute notes that most Florida policyholders obtain flood coverage through the National Flood Insurance Program, which offers lower-cost, government-backed options, while private insurers typically charge higher annual premiums. Costs vary by risk level and home location, and many residents still weigh the price against other daily expenses.

In the past five years, four major storms—Ian, Helene, Idalia and Milton—have battered the state, underscoring the extent of flood risk and the economic toll of extreme weather. Experts say the cumulative damage from these events has surpassed $60 billion, highlighting why many residents are now facing the double challenge of rising premiums and a crowded insurance market. As peak hurricane season arrives, forecasters warn of another tropical disturbance forming near Florida that could intensify into Tropical Storm Gabrielle, with some models suggesting it may threaten the East Coast.

One industry statistic underscores the scope of the risk. Mark Friedlander of the Insurance Information Institute says that one in five homes in Florida do not carry flood insurance, translating to roughly 80 percent of homes without coverage. He notes that Florida’s vulnerability is not limited to coastal counties: every county can experience flooding, given the state’s weather patterns and rapid development in flood-prone areas.

Real estate professional and Florida-based broker Jeff Lichtenstein says some homeowners are outright gambling on their safety, choosing to go without flood insurance despite living in high-risk zones. “People are just gambling to an extent, saying nothing’s gonna happen which I think is crazy but we have some people that do that. Just no insurance whatsoever. They don’t want to accept reality,” he said. He added that older homes lacking modern flood-proofing and generation-ready power supplies remain particularly at risk.

The financial calculus for flood insurance varies widely. The FEMA-managed National Flood Insurance Program typically offers more affordable, basic coverage, with average annual costs around $850. Private insurers in Florida often price policies higher, sometimes starting around $1,500 per year, reflecting higher perceived risk as climate-driven flooding becomes more common. While some mortgage lenders require flood insurance, there is no statewide mandate that all homeowners carry it, and many homes are not covered at all.

Officials stress that even properties in areas labeled low- to moderate-risk can flood with sufficient rainfall or storm surge, and the cost of not having coverage can be devastating. Friedlander notes that just one inch of floodwater can cause tens of thousands of dollars in damage, underscoring the need for coverage even for homes that do not sit in the highest-risk zones. In Florida, a lack of insurance can leave households to bear flood-related losses alone when storms strike, a situation lawmakers and insurers say is unsustainable for a state regularly battered by extreme weather.

As Tropical Depression Seven formed in the Atlantic and forecasters warned it could become Tropical Storm Gabrielle later in the week, residents faced renewed questions about preparedness in a season that already has demonstrated the vulnerability of homes to flood damage. Some projections show Gabrielle potentially tracking toward the U.S. East Coast, a development that would extend Florida’s exposure into new parts of the Atlantic hurricane corridor and test the region’s insurance market further.

Across Florida, residents and policymakers continue to weigh the balance between rising insurance costs and the increasing risk of flood damage. For many families, the question is not whether another storm will strike, but how to manage the financial fallout when it does. As climate-driven storms intensify and become more frequent, the issue of flood insurance — or the lack thereof — remains a central concern for the Climate & Environment beat.