Floods are the number one national disaster in the U.S. and the cost of recovery from flooding grows every year. Most homeowners don’t suspect they are at risk. However, all 50 states have experienced floods or flash floods in the past five years and 20 percent of all flood related insurance claims are on properties outside of designated risk zones.
Private Primary Flood Insurance is becoming more prevalent in the marketplace. With huge flood losses to the National Flood Insurance Program (NFIP) from recent hurricanes, the urgency for private companies to support flood insurance is at an all-time high. Private companies are now using innovative modeling technologies to properly evaluate flood risks. This allows private markets to accurately ascertain the risk involved, offer increased limits over the standard NFIP policy limits, and provide one comprehensive policy with additional offerings.
Clients insured by the NFIP may come up short with their government-provided coverage and experience significant losses if they exceed their policy limits. Unfortunately, it’s often only after a property is flooded that owners realize the real risk they face. Be sure to discuss Primary and Excess Flood Coverage with your clients today.