HUDSON, Fla. — After receiving a letter from Citizens Property Insurance this year stating that he is now required to get flood insurance, one Hudson homeowner emailed ABC Action News to ask how Citizens valued his property.
FLOOD INSURANCE REQUIREMENT
In 2023, Citizens Property Insurance began phasing in a requirement that policyholders get flood insurance coverage for their property, whether they live in a flood zone or not. The letter Mead received read the following:
"If the property insured by Citizens under this policy is located outside of the Special Flood Hazard area, flood coverage must be in place effective on or after:
- Jan. 1, 2024, for a structure that has a dwelling replacement cost of $600,000 or more
- Jan. 1, 2025, for a structure that has a dwelling replacement cost of $500,000 or more
- Jan. 1, 2026, for a structure that has a dwelling replacement cost of $400,000 or more
- Jan. 1, 2027, for all other policies"
REACHING THAT THRESHOLD
However, how Citizens comes up with what your home is worth is why Hudson homeowner Kevin Mead emailed ABC Action News anchor Nadeen Yanes, who covers insurance.
"I sent the email into Action News, saying I have issues along the same genre that you're following with this story, and I wanted to know if you'd be interested," he said.
Already, Mead has seen his insurance premiums skyrocket from $1,400 in 2008 to more than $5,280 in 2025.
"I'm on Social Security, I'm retired, I can't just go fabricate more money into my bank account every month so I can address an increase in my insurance policy," Meade said.
Not only that, his frustrations only grew when he got the letter from Citizens saying this year, he is now required to get flood insurance.
"Now they're demanding that you know, I carry flood insurance because my health is over $500,000, and there's no way my house is that worth. There's absolutely no way it's going to flood," he added, reading parts of the letter to us.
"Starting Jan. 1, 2025, for a structure that has a dwelling replacement cost of $500,000 or more..."
According to his new Citizens policy, his house hit the threshold, evaluated at $549,000 dollars, though the Pasco County Property Appraiser's Office only has it valued at just under $387,000.
"I would be curious how they would justify a $250,000 increase in replacement costs for my home. My home hasn't changed in 40 years," he said.
"DWELLING REPLACEMENT COSTS"
According to the letter Mead got, it's right there in the wording: Dwelling Replacement Costs.
"The dwelling replacement costs, which means the cost to rebuild the house, not the market value of the house," explained insurance agent Jake Holehouse with HH Insurance Group. "As an example, a house on Bayshore Boulevard in South Tampa can have a very high market value, but it has the same reconstruction value of a house located, say, in Dade City. So, as a result, it's basically a construction price estimator."
Holehouse said many insurance agents use two mainstream software services to determine what your home's replacement costs will be, and based on how much it will cost to rebuild your home, Citizens determines your home's value to them.
"Citizens will accept an alternative of the 360 value or a different one, as long as the input data is the same, but for the most part, they're typically within two to 5% of each other, up or down," Holehouse said.
In fact, a spokesperson with Citizens Property Insurance said they will take an alternative valuation, though it may only hold off that flood requirement for a year or two. Since all Citizens policyholders must have flood insurance by 2027.
"Eligibility for Citizens coverage is based on a structure's estimated replacement cost, not its assessed or market value. Like other property insurers, Citizens calculates replacement costs using nationally recognized standards and software, but will also consider alternative valuations from licensed, qualified parties," wrote Michael Peltier, Citizens Property Insurance spokesperson. "We urge our policyholders to work with their agents, who are often in the best position to recommend options that best meet their individual needs."
SHOP YOUR POLICY AROUND
It could also be an opportunity for you to shop your policy around if you don't want to pay that flood insurance requirement, industry leaders say. It's what Mead did, and in fact, found another insurance company that quoted him for a new premium at $600 less a year, and now he doesn't need to get flood insurance.
"A quote I got last week from another carrier was $600 cheaper, Mead said. "Absolutely shop around. $600 will make a mortgage payment for me."
Holehouse added with more private insurance companies entering the market and taking on more risks, there are more options for homeowners other than Citizens.
"We are finding that the rest of the marketplace and the private market alternatives are coming in less expensive than Citizens right now," Holehouse said. "With where the marketplace is right now, there are a lot of options out there for insureds and the other options, as long as it's not in a flood zone, a or V, they don't have the flood requirement."
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