Tens of thousands of National Flood Insurance Policy holders in Lee County will be notified by the federal government this month that they are in danger of losing discounts of up to 25%.
And officials in Lee County and Fort Myers Beach government are hoping they can help assuage the fear those notices may bring with notices of their own.
Policy holders throughout all of Lee County have for decades enjoyed these steep discounts that are well below rates of private insurance market.
But getting and keeping these discounts through what’s called the Community Rating System takes great effort.
At issue are an extensive number of post Hurricane Ian rebuilding and permitting issues the Federal Emergency Management Agency still has with the county and the municipal governments of Fort Myers Beach, Estero, Cape Coral and Bonita Springs.
Those governments are headed toward probation and without corrective action, policy holders may no longer be able to get flood insurance through the national program in the not-too-distant future.
If discounts are to go away, the earliest that could happen is in April 2025.
In unincorporated Lee alone, there are 67,000 National Flood Insurance Policy holders. Since 2007, these policy holders have received 25% discounts. This represents a combined cost savings of between $14 to $17 million annually.
Estero policy holders have been getting 20 percent discounts while all other municipalities throughout Lee have enjoyed a 25 percent discount based on points earned in the Community Rating System.
Discounts are based on a lengthy number of requirements the local governments must take to mitigate future flood claims such as following elevation requirements and closely monitoring permitting.
But Hurricane Ian sent much of Lee County into a tailspin with its 150 mph winds and extensive flooding caused by storm surge.
Only Sanibel Island and Fort Myers remain in good standing with the Community Rating System after Ian.
The other municipalities have until mid November to rectify the outstanding problems that were addressed four months ago.
In a letter to the Lee County government last month, FEMA said the government still has not provided necessary permitting paperwork for structures and developments in Special Flood Hazard Area. Of paperwork submitted for 414 structures initially in question, FEMA found only 10 percent of the permit packages were complete.
FEMA is required to notify policy holders living in communities in jeopardy of losing good-standing of potential changes. Changes could mean a $50 surcharge on all policies, loss of the 20 and 25 percent discounts and potential loss of ability to have federal flood insurance in the future.
Dave Harner, county manager for Lee County, told the Lee County Board of County Commissioners Tuesday that the federal government’s letter to policy holders could “be a bit concerning.”
In an effort to get ahead of this, the county, Harner said, is sending out its own letters explaining it is working to rectify the matters FEMA still has.
“We are still working with FEMA … We feel very confident that we will be able to keep our [Community Rating System] rating. FEMA has been a good partner through this process, and they continue to work diligently with us. We meet with them regularly, at least three to four times a week.”Dave Harner
Harner said FEMA’s letters to policy holders addresses a worst-case scenario and he hopes the county’s letter can blunt some of those fears.
“We are still working with FEMA,” Harner told the commission. “… We feel very confident that we will be able to keep our [Community Rating System] rating. FEMA has been a good partner through this process, and they continue to work diligently with us. We meet with them regularly, at least three to four times a week.”
In a media release sent late Tuesday, Fort Myers Beach Town Manager Andrew Hyatt said the town will mail a letter this week to more than 5,000 households in Fort Myers Beach with policies from the National Flood Insurance Program to offer an update and reassurance about efforts to work with the Federal Emergency Management Agency to retain policy discounts.
“The Town of Fort Myers Beach is committed to transparency and as such we will continue to provide information to our citizens regarding the National Flood Insurance Program," Hyatt said in the release. "Town staff continues to work with FEMA to avoid probation and maintain the current CRS Rating of 5.”
Details regarding what is still needed for the municipalities outside of unincorporated Lee were not readily available Tuesday.
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