Cape Coral Retains 25% Flood Insurance Discount, Avoids FEMA Probation

November 21, 2024

The City of Cape Coral is pleased to announce that our residents and businesses with a National Flood Insurance Policy (NFIP) will retain the Class 5 rating under the NFIP and will not face probation.

This means Cape Coral residents and businesses will continue to enjoy a 25% discount on their NFIP flood insurance policies and uninterrupted access to FEMA assistance in the event of a disaster.

"I am proud to announce that Cape Coral has successfully retained its Class 5 rating, ensuring a 25% discount on flood insurance for our residents and businesses," said Cape Coral Mayor John Gunter. "This achievement highlights our City's resilience and ongoing commitment to protecting our community while preparing for future challenges."

FEMA's initial review, beginning in March 2024, highlighted concerns related to the City's floodplain management. To address these concerns, Cape Coral submitted a National Flood Insurance Program Corrective Action Plan to FEMA on September 16, 2024. The plan outlined robust measures to resolve past issues and included additional efforts to enhance community flood resilience. Key components of the plan included:

1. Addressing Program Deficiencies and Substantive Violations: Ensuring compliance with NFIP standards.
2. Assessing Floodplain Development Since Hurricane Ian: Conducting thorough reviews to identify and rectify potential issues.
3. Leveraging Code Enforcement: Strengthening enforcement of floodplain regulations.
4. Implementing a Substantial Damage Administrative Procedures Plan: Launched on November 18, 2024, this plan provides a systematic approach to assessing substantial damage.
5. Enhancing Community Flood Resilience: Highlighting proactive efforts to address climate change and stormwater challenges, including studies, grants, and legislative advocacy.

"FEMA's decision both eliminates the threat of higher insurance premiums for residents and businesses and displays City staff's dedication and commitment to our residents. Through staff's hard work, we've preserved discounted flood insurance for our community, ensured FEMA compliance, and reduced financial burdens for our residents," said City Manager Michael Ilczyszyn. "We've also started assisting other cities recently impacted by storms, sharing our experiences to guide them in achieving FEMA compliance and strengthening their own resilience."

The City's comprehensive response demonstrates Cape Coral's dedication to mitigating flood risks, enhancing stormwater management, and strengthening its overall disaster preparedness. This achievement positions Cape Coral as a model for resilience and sustainability in the face of evolving climate challenges.

"These actions demonstrate our proactive approach to protecting Cape Coral's residents and enhancing flood resilience," said Emergency Management and Resilience Director Ryan Lamb. "By addressing FEMA's concerns, we've strengthened our ability to safeguard the community against future disasters while maintaining vital benefits."