Weather, Floods & Insurance
Global climate change is real. Asked about increasing atmospheric heat causing more powerful storms, Bob Bunting, CEO and Chairman of the Climate Adaptation Center in Sarasota, said “The short answer is around 2020 we had a shift in the climate. Since then we’ve had more Category 5 and 4 hurricanes than we did the previous 100 years – that’s pretty amazing.”*
It’s also pretty scary. 2023 was the Earth’s hottest year since we started keeping records in 1880. And, the ten past years are the hottest 10 on record – this trend isn’t an anomaly and is here to stay.
Worsening Storm Severity and Frequency
To date, five hurricanes have hit Sarasota County: Irma in 2017; Ian, 2022; Idalia, 2023; and Debby, Helene and Milton in 2024. Hurricane Irma made landfall in the Keys and then hit Marco Island in 09/2017, yet it caused damage throughout Sarasota county. This marked a “new normal” for Florida.
Dr. Bunting also notes that the sea level around Sarasota has risen nine inches since 1950. In mid-December of 2024 this writer was present when a un-named rain storm stalled over Sarasota causing a once in a 500-year flood event with 11+ inches of rain falling in five hours, the street flooded coming within inches of his first floor condo. He doubts it will be 500 years till the next time this happens.
In 2024 we sweated through five named storms coming up the Gulf of Mexico threatening Sarasota. Even though Hurricane Helene made landfall 200 miles north of Sarasota, its storm surge caused severe damage on 09/26/24 to the marina – our concrete finger dock flipped over the day after Alto was moved by its new owner. After we bought the condo, we replaced Alto with a smaller, trailerable boat of the same make that could be hauled out when a storm threatened. With home ownership came a different type of worry over storms:
Home Protection
Know that in many places in Florida if you replace a window, door or slider you must get a building permit you will be required to meet current code. So your old or broken $500 slider must be replaced with a Cat. 5 rated impact glass door costing $10,000 or more. Our 12 foot slider would cost $15 to $20k to replace! Just replacing an old single-glazed $100 window will run at least $1200 now for a required hurricane rated impact glass window. Sure, you will get better sound and weather insulation, but at what cost!
At left, the This Old House video explains what impact glass is and compares it to other hurricane mitigation methods.
What we did: We left our old windows in place and installed inexpensive hurricane film on the inside that prevent wind-driven objects from penetrating into the condo. We had a 12’ by 8’ motorized roll-down Kevlar hurricane screen installed just inside our insect screening on both condos’ patios. When rolled up we still have access to the screen door leading to our yard for the first floor condo.
Rolled part-way down we gain 95% solar protection, cooling, wind and rain protection, and a privacy screen as we are at street level. While expensive at $6500, it was about one-third the cost of replacing our slider with impact glass. It might reduce our home owners’ insurance a little bit. The screen is almost water proof, and folks did not even have to remove their porch furniture cushions, which stayed in place and dry, when Hurricane Ida hit Louisiana as shown in the video of their screened patio below.
Flood Zones
First, figure out what flood zone you are considering buying/renting in. FEMA identifies any place with a ≥1% annual chance of a ≤1 foot flood as a high-risk zone “A” in their mapped Special Flood Hazard Area (SFHA). If there is additional risk from storm waves (surge) then it jumps up to a “V” zone rating.
Both zones A and V will require flood insurance for any federally backed/guaranteed mortgage. The other zones X, B or C do not required flood insurance. If the FEMA Flood Insurance Rate Map (FIRM) shows an the flood risk areas as shaded.
Using this tool, click the Flood Area Map then click on your building. For example, clicking on 631 N. Orange Ave. (Mentone Court, the blue building) yields the map below showing no 100-year flood risk, placing it in an X zone – a good thing. However, the street in front, Orange Avenue, is at risk for flooding. Luckily, Mentone Court has access to another driving exit path which has little-to-no risk of flooding.
The Insurance Situation
No longer writing new policies in Florida are Farmers, Progressive and AAA. But, State Farm, Travelers and Nationwide remain. Happily, in December of 2024, the Florida Chamber of Commerce’s Annual Insurance Summit reported signs of insurance market stabilization. Some factors are not weather related at all, and could be controlled.
The Insurance Information Institute believes costs increased after the Supreme Court in 2017 allowed attorneys 2.5x their normal billing rate when courts find for policyholders, increasing litigation in general. This has nothing to do with risks posed by weather and Florida now accounts for 79% of all insurance lawsuits filed! Another factor is that the remaining smaller insurers rely heavily on reinsurers who are retreating from Florida, which drives up costs. The types of insurance are described below:
Property Insurance vs. Home Insurance
Home (Owners) Insurance is paid by the owner of a condo and is comprehensive, covering the structure and permanent fixtures like kitchen cabinets, toilets, HVAC systems, etc. Some contents (furniture, clothes and electronics) may be covered but limited (especially jewelry and artwork). Some HOA fees pay for “Building Insurance.” Think of building insurance as a component of the more comprehensive home insurance, but it only covers repairs to the structure and pays if a pipe bursts causing water damage, or a tree breaks through a wall. Fire and wind (usually with a higher deductible) damage will also likely be covered. Flood damage is not covered.
So if a condo’s HOA fee includes a master “Building Insurance” policy that can be a huge cost savings to you, and it would help justify a more expensive monthly HOA fee. But that insurance won’t cover internal damage to the condo like floor coverings, lost furniture or damage to cabinets and appliances. NOTE: Neither Building nor Home insurance will ever cover any damages due to external rising waters; i.e., flooding. Investigations will determine if water damage was wind driven vs. flooding, with the latter not being covered.
A gray area you must explore is where any building insurance stops. If your condo association has building insurance, but it doesn’t cover the insulation, studs and sheetrock in your condo’s walls, or plywood subfloors that would be on you. Often it from “the paint” in so sheetrock, studs and insulation would be covered, Again, nothing will be covered in a flood due to rising waters. A broken pipe or a tree damaged roof – yes, but a flood – no. So, you also need to consider additional Flood Insurance, especially if you are on the first floor of your building.
Flood Insurance
Almost all residential flood policies are sold through the National Flood Insurance Program (NFIP) administered by FEMA, here’s some details. They subsidize about 50 insurers to keep them in the game. Private insurance in Florida is almost nonexistent, maybe 3000 policies are left in the state.
Flood insurance will kick in if water surges from the ground up, like from a heavy rainfall or an overflowing nearby lake or river. The maximum is only $250k on the building and $100k for contents, prices vary only slightly from the minimum $1k deductibles for each, to a maximum of $10k. NOTE: If fire or wind-driven rain comes in your walls/windows or damages your roof and water enters through the ceiling that is not covered by flood insurance, but typically it is covered by home insurance.
Strategy: Start with seeing if your HOA fee covers Building insurance and which, if any, components in your condo. Ask the association for a copy of the Master Policy. Then explore costs of adding home owner’s insurance to cover interior parts of your condo that the Building policy doesn’t. At the very least count on bearing the cost of rugs, vinyl floor covering, furniture and electronics, kitchen cabinets, appliances, possibly HVAC equipment and personal items in a claim. If your HOA doesn’t have a policy on the building, consider taking the maximum flood insurance of $250k, as no condo is worth less in Sarasota.
The websites of the 31 NFIP insurers in Florida are listed here. You can Google “best flood insurers in Florida” and go to their website. There are on-line home insurance comparators to get an idea of costs, but this Get a Quote link for homeowners and renters is on the actual NFIP website. It takes only a few minutes to give you a quote and it will then connect you three insurance brokers if you want.
HINT: Call the broker you select and add a rider for flooding due to clogged storm drains in your street. If an overwhelmed storm drain leads to flooding, it may be deemed not rising water related but due to negligence on the city’s part and the resulting damage might not be covered.
What we Did: We explored home owner’s insurance for our second floor condo which was susceptible to wind damage from hurricanes. However, we looked on the NFIP Get a Quote site for additional flood insurance for our first floor condo, which is just inches above ground level. Since the road in front of the condo is subject to potential flooding, we’ll check if we need a rider to cover storm drain clogs.
Since we have HOA covered Building insurance, we only needed $75,000 for the internal structure and $25,000 for contents which came in at $678/year. For our second floor unit it was just $568/year which we skipped. Since our HOA fee covers a master Building insurance plan, we need only worry about sheetrock, floors, kitchen cabinets and the water heater and AC compressor at ground level so $75k seemed adequate.
Evacuation Level
Now determine your Evacuation Level, A–E from this
Strategy: Opt for downtown access over waterfront views why you buy. If you must have water views, check for impact glass, if it is missing then negotiate the high cost of impact windows and doors into your purchase offer. Avoid evacuation areas A, B and if possible C. If buying, check if the HOA has Building insurance and what it covers. Run a trial on-line insurance application for home owner’s insurance, and for flood insurance if on the first floor to get an idea of costs before you buy.
Milestone Inspections
After Miami’s infamous Surfside Champlain Towers condo building collapse in 2021, new FL laws required that any all ≥three-floor condo buildings built before 1992 (or ≥25 years old) within three miles of the coast must undergo a “Milestone Inspection” by 12/31/24, and then every ten years thereafter. Buildings that are ≤25 years old must get their first Milestone Inspection 30 years after being first occupied.
Even when no repairs are needed, a required reserve study will dictate what reserves the association should have to cover estimated future repairs based on the limited lifespan of concrete, windows, elevators, roofs, etc. Almost all older associations will be found to be grossly underfunded, resulting in the potential of huge sudden assessments on condo owners for current and imagined future needed maintenance.
Strategy: Buy in the newest possible condo building you can afford. Avoid under-building garages, and buildings with pool decks above garage space, which caused the Surfside collapse. Review condo association engineering reports and ensure adequate reserves are already in place. If not, ask what the estimated special assessment(s) will be. Avoid buildings in the flood plain – which is likely impossible if you want a water view. Seek a townhome, free-standing house or a condo in a building no taller than two-stories to avoid the Milestone Inspection and reserve study.
What we did: We bought in a two-story block building (no Milestone Inspection required) with a tile roof, built on a slab which is not in a flood zone. We probed into walls and above ceilings to find defects, and old plumbing and wiring was replaced. Our association voted to double our low HOA fees (still only $522/month) to build reserves. We installed cat. 5 hurricane rated roll down screens on the lanai, and hurricane film on the windows.
The Insurance and Milestone Effects on Sales
The number of condos and townhomes for sale in 2024 increased by 92% as compared to 2023, and sales slumped 9.2% in 2024 indicating weakened demand (US News&World Report). Estimates in Miami expect average increases of 30–40% in reserve funding across FL. This can and has amounted to a special assessment of over $100,000 to some owners. Multiple listing services compilations for 2024 found condo prices in buildings ≥30 years old dropped 21%, while in newer buildings 10–30 years old prices rose 9%.
Sarasota remains popular, and is considered a “balanced” buyer’s vs seller’s market. The biggest constraint on new sales are rising mortgage rates in early 2025 (7.4%), not so much hurricane/insurance fear. However, it’s safe to say the price surge is over. Sarasota and Manatee counties home sales were down by 4% and prices down 5% in 2024 compared to 2023. Desirable downtown Sarasota is less affected, but still the 2024 downtown median home price of $1.3M was 4% less then for the prior year. But sales still remain strong, as Redfin reports 67 homes sold in 12/24 as compared to 36 homes in 12/23.
There are some downsides to living in Sarasota, which we’ll address in the next section.
*Dr. Bunting, quoted in the Herald-Tribune on 10/06/24.
