Flooding is a significant risk for Florida homeowners, as standard home insurance policies do not cover damage caused by rising water. Flooding can occur both along the coast and inland, making it essential for all homeowners to consider flood insurance. The NFIP caps annual premium increases, but private policies do not have such restrictions and may be subject to non-renewal. Additionally, private policies may not be backed by the Florida Insurance Guaranty Association, which could leave homeowners vulnerable if the insurer becomes insolvent. Homeowners should also be aware that switching from NFIP to private insurance could result in losing certain discounts if they later return to the federal program.