City of Cape Coral Reassures Residents of Flood Insurance Program Status

August 6, 2024

City Manager Michael Ilczyszyn will be mailing a letter this week to over 68,000 households in Cape Coral to provide an important update and reassurance regarding the city's efforts to work with the Federal Emergency Management Agency (FEMA) to retain valuable discounts on flood insurance policies through the National Flood Insurance Program (NFIP).

Later this month, FEMA is mandated to send a letter to Cape Coral residents about the status of the NFIP. The City of Cape Coral understands that some of the language in FEMA's letter may cause concern among residents. Specifically, the FEMA communication may reference the possibility of removing Cape Coral from the Community Rating System (CRS). This designation currently provides Cape Coral residents with up to a 25% discount on their flood insurance premiums. The letter may also mention a potential $50 surcharge for all policyholders if the city were placed on probation and suggest that a suspension from the program could result in residents losing eligibility for federal flood insurance.

These potential outcomes are not expected to occur during the 2024 hurricane season. The city has ample time to collaborate with FEMA, develop a plan to avoid probation and ensure that Cape Coral remains in good standing within the NFIP.