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SAVING MONEY ON INSURANCE: Donalds, Scott propose tax breaks for flood insurance

The legislation would create a non-refundable tax deduction for homeowners who purchase flood insurance.
Posted at 4:16 PM, May 08, 2024
and last updated 2024-05-08 16:16:44-04

As leaders in Lee County and several other localities work to get back into the good graces of FEMA, a new proposal could save southwest Florida residents hundreds of dollars on their flood insurance.

“We all know that flood insurance costs continue to go up. So, this is an issue for families, not just in Florida, but all across the country,” said Rep. Byron Donalds (R-Naples) who filed a companion bill with Florida Sen. Rick Scott that would provide tax relief for flood insurance customers.

The legislation would create a non-refundable tax deduction for flood insurance premiums purchased either through the National Flood Insurance Program or a private insurance carrier.

“My view is that its Southwest Florida’s opportunity and time to be able to reap some of the benefits of that program without seeing their rates increase,” Donalds told Fox 4.

Byron Donalds Congressman
U.S. Representative Byron Donalds talked with FOX 4 about legislation he's proposing with Senator Scott to make flood insurance a little more affordable.

“This is a commonsense bill to ensure Floridians can maintain coverage without breaking the bank,” Scott said in a statement to Fox 4.

FEMA argues too many people in southwest Florida rebuilt their homes after Hurricane Ian without proper permitting.

However, Fox 4 Investigates showed last week in a series of hearings in Cape Coral, that more than 1/4th of the accused residents in that city were later found innocent.

“The vast majority of homeowners are, actually, following the rules of our localities. So, they shouldn’t see an increase because of FEMA’s action,” said Donalds.

Meanwhile, in a separate court battle, a federal judge refused to block FEMA’s flood insurance rate overhaul, which could also end up costing southwest Florida residents hundreds more dollars a year.

Continuing Coverage of FEMA Flood Insurance Controversy