Shot: Nearly 140K properties moved into high risk flood category in new FEMA flood map update across Miami-Dade, Broward, Palm Beach counties in FL.
Chaser: To access Citizens, the FL state insurer of last resort (when you can't get hurricane coverage), you now have to also buy a FEMA flood policy.
As long as the insurance coverage is tied to the hazard maps, and the hazards are increasing, any updates to the maps will cause this kind of thing. The answer is not to stop updating the maps surely? Nor should everyone else be subsidizing their insurance. What should be happening instead?
No doubt - if anything need regular updates so disruptions aren't so abrupt.
Was interested to see that most in Broward were high risk before 2014 update - moved to low - now back to high.
Functional effect: Likely lost grandfathered flood insurance rates. Incoherent plan = excessive disruption.
Now I need to figure out which of our CRE loans are affected by the new maps and enforce flood insurance. Lots of work, but worthwhile to protect the portfolio