Fort Myers Beach making progress on lost flood discounts
Bills filed in Congress would provide a tax break for those buying flood insurance, in a move to improve nationwide flood coverage, plus FEMA touches down in Fort Myers Beach for a visit that could restore residents’ lost federal flood insurance discounts. It’s all in this week’s Flood Digest.
Flood Insurance Incentives: With flood damage costs rising each year and the recent tragedy in Texas, the ongoing challenge is how to encourage more Americans to purchase flood insurance to protect their homes and belongings. Florida’s U.S. Senators Ashley Moody and Rick Scott have proposed one solution: the Flood Insurance Relief Act, which would allow homeowners to deduct premiums paid on National Flood Insurance Program (NFIP) or private flood insurance policies from their federal taxes. The tax deduction would apply to anyone making up to $200,000 in annual income or $400,000 for a joint tax return. Naples Congressman Byron Donalds is championing a companion bill in the House. “Families shouldn’t have to choose between protecting their homes and putting food on the table, said Scott in a news release. “I’ve been working on several bills to fix the broken NFIP system and encourage private-sector participation to allow for a more robust, affordable flood insurance market, but we must do more to help families ASAP.” While a staggering 90% of U.S. natural disasters involve flooding, only 4% of homeowners nationwide have flood insurance. In Florida, the percentage is 20%. FEMA reports that the average federal flood insurance policy in Florida costs $865 a year, so a tax deduction could amount to serious savings for homeowners.
Flood Discounts: In Fort Myers Beach, the big issue has been getting off probation and having policy discounts reinstated in the NFIP. After getting flagged last year by FEMA for unpermitted structures and other rule violations in Hurricane Ian rebuilding, the town got right to work and fixed all their outstanding issues. While probation was lifted this spring, FEMA representatives conducted a Community Assistance Visit to Estero Island earlier this month to determine if the town is eligible to have its 25% NFIP discount reinstated for its residents. The agency reviewed over 100 properties and should have a decision by next spring. In the meantime, as part of the compliance efforts, residents who’ve been temporarily living or operating businesses out of trailers have other deadlines to attend to: by September 23, all temporary use permitted trailers must be removed from Fort Myers Beach or face code violations. Frustrated residents and local leaders alike remain hopeful that FEMA’s visit spells good news for their community – a light on the horizon to help bring a sense of normalcy and security back to the Florida gem.
LMA Newsletter of 7-28-25
