According to the Insurance Information Institute, 90% of natural disasters in the US involve flooding, however, many insureds may be resistant to purchasing coverage if they have never found themselves in a flooding situation. Float these six reasons to buy flood insurance past your customers to help them rise to the challenge of flooding risks today. 

Six important facts to help your insured see the importance of a flood policy

  1. Flood is not covered under most Homeowners policies. A separate flood insurance policy is the only way to insure against flood damages. According to FEMA, only 1” of water can cause over $25,000 worth of damage to the average home. That is a devastating cost for most homeowners to cover without additional flood insurance.

  2. You don’t have to be in a “high-risk” area to be in danger of flood damage. From 2014 to 2018, policyholders outside of designated high-risk flood areas filed over 40 percent of all NFIP flood insurance claims and required one-third of federal disaster assistance for flooding. *FEMA

  3. Flooding can happen anywhere at any time. Poor drainage systems, summer storms, melting snow, neighborhood construction, and broken water mains can all result in flooding. In high-risk areas, there is at least a one-in-four chance of flooding during a 30-year mortgage *FEMA

  4. Having a flood insurance policy is a way to protect your assets most fully from the cost of flood damages and loss. Without insurance, relief from floods primarily comes in the form of loans. If your community is declared a disaster area, no-interest or low-interest loans are often made available by the federal government as part of the recovery effort. However, these loans must be paid back, which means you’re still liable for the entire cost of your damages or losses.  *Insurance Information Institute 

  5. It can be augmented with “excess” insurance – The NFIP policy maximums are inadequate to fully cover some people’s assets so a growing number of private insurers have begun offering excess flood policies, intended to provide water damage protection to homeowners over and above the coverage provided by the NFIP policies. Some private insurers are also starting to offer “first dollar” flood policies. *Insurance Information Institute    

  6. You can shop for the best price. Private products are not subject to federal surcharges or reserve fund assessments and may be less expensive to purchase than NFIP flood insurance, particularly for structures not used as primary residences.

Presenting private flood insurance options not only helps your clients make more informed decisions, but it also enhances your value as you help them protect what matters most: their families, homes, and treasured possessions. To learn more, read ” 7 Questions to Consider When Selling Flood Insurance“ from *Insurance Journal.

JSA offers a private flood program that can cover the full value of your insured’s property that does not require a waiting period for loan closings and only requires a maximum 2-week waiting period in other instances. For more information contact Personal Lines Manager, Michelle Rupard for assistance.