As a Board Member of the Siesta Key Association, I attend our monthly meetings at the Siesta Key Chapel on the second Thursday of every month (and I encourage you to attend, too). But our January 2025 meeting was unlike any other—it was standing room only.
The reason? Frustration over permits. Our guest speaker, Mike Deming, Sarasota County’s acting Building Official, was there to address the concerns. As the person responsible for issuing permits and ensuring compliance with FEMA regulations, his decisions directly impact every property owner on Siesta Key.
And let’s just say… he carries a significant responsibility. The choices he makes now could affect flood insurance rates on Siesta Key for years to come.
What Happened to Fort Myers Beach?
Fort Myers Beach recently felt the full force of what happens when FEMA’s 50% Rule isn’t followed. On April 8, 2024, FEMA sent a letter to the town stating that it was “no longer in compliance with the National Flood Insurance Program’s (NFIP) Minimum Floodplain Management Standards.”
As a result, FEMA revoked the town’s CRS Class 5 rating, which had previously provided a 25% discount on flood insurance premiums. As of October 1, 2024, that discount is gone—meaning every flood insurance policyholder in Fort Myers Beach will now face higher rates, regardless of whether they personally complied with the rule.
How Did This Happen?
After Hurricane Ian, Fort Myers Beach was left with severe damage to homes. The town’s permitting authority was responsible for ensuring that rebuilding efforts followed FEMA’s 50% Rule. But according to FEMA, they failed to do so.
FEMA cited widespread unpermitted work and a lack of proper assessments to determine whether repairs met the substantial improvement threshold for properties in special hazard flood zones. The result? An entire community is now paying the price with skyrocketing flood insurance rates.
Siesta Key: Learn From Their Mistakes
I’ve written about the 50% Rule before, but since it’s a hot topic on the island right now, let’s break it down again—in plain English.
What Is FEMA’s 50% Rule?
Before 1968, private insurers refused to cover properties in flood-prone areas (because, well… they flooded. A lot.). After repeated catastrophic floods, the federal government stepped in and created the National Flood Insurance Program (NFIP) under the National Flood Insurance Act of 1968.
To reduce repeat losses, FEMA introduced the 50% Rule—a policy designed to prevent rebuilding efforts that keep properties below modern flood standards.
Here’s how it works:
If a building in a Special Flood Hazard Area (SFHA) is substantially damaged (or improved) by 50% or more of its structure value (not including land), then it must be brought up to current floodplain regulations.
This could mean:
Elevating the structure
Using flood-resistant materials
Following stricter construction standards
How Do You Calculate 50%?
The value of the structure refers only to the building—not the land it sits on.
Example Calculation:
Let’s say you check the Sarasota County Property Appraiser’s website and see:
Building Value: $100,000
Extra Features: $50,000
Total Improvement Value: $150,000
50% of that: $75,000
That means $75,000 is the maximum you can spend on repairs or renovations before you trigger FEMA’s substantial improvement requirement.
What About Sarasota County’s Policies?
When calculating the 50% threshold, in the past, Sarasota County permitted homeowners to add 20% to the property appraiser’s assessed value of the structure (not land) for repairs or renovations without triggering the requirement to bring the entire structure into compliance.
Homeowners can also get a private appraisal from a licensed appraiser, which may show a higher property valuation—if the new appraisal is approved by the county, you could possibly have a higher limit to spend on renovations. (This has been a game-changer for many post-hurricane homeowners)!
Why This Matters for Siesta Key
If Sarasota County isn’t diligent in issuing permits and monitoring rebuilds on Siesta Key, we could face the same consequences as Fort Myers Beach.
FEMA has shown that it’s watching. And they will pull flood insurance discounts if communities don’t enforce regulations.
For Siesta Key homeowners, that means:
Make sure all work is permitted.
Keep records of repairs & costs.
If you’re in a flood zone, double-check your 50% Rule compliance.
We do not want Sarasota County to receive a FEMA compliance warning—or worse, lose our flood insurance discounts.
If you have any questions about how this could impact your property, feel free to reach out!
Until then…
Stay Sunny, Siesta!
Natalie Gutwein is a REALTOR on the Judie Berger Team with Premier Sotheby’s International Realty.
The information provided in this article is for informational purposes only and should not be considered legal, financial, or insurance advice. Homeowners should consult with their local building department, floodplain manager, or insurance provider for specific guidance related to FEMA regulations, flood insurance, and property compliance. Data and research sources include FEMA, the National Flood Insurance Program (NFIP), Sarasota County, the Florida Division of Emergency Management, and the Insurance Information Institute (III).
