Flood

The NFIP is a federal program that ensures flood insurance is available to homeowners, renters and business owners. To qualify, a home or business must be located in a participating region and is required to adopt practices to reduce flood risk that meet Federal Emergency Management Agency (FEMA) requirements. Though most primarily flood policies are written with NFIP, clients with properties like condominiums that do not fall under traditional personal and commercial line stipulations can pursue customizable policies outside of NFIP.

Clients who own properties with a net-worth exceeding standard flood insurance limits should consider purchasing an Excess Flood policy. Standard flood limits were established under the National Flood Insurance Program (NFIP) – $250,000 for personal lines and $500,000 for commercial lines. With an Excess Flood policy, property owners receive extra protection as needed, with coverage available up to $5 million. Retail brokers and agents should not ignore properties located in low-risk areas for flooding either; 30 percent of flooding claims originate in inland zones that do not have coastal risk. Excess Flood policies do not include geographic exclusions, so it’s important for retail brokers and agents to inform both coastal and inland clients that coverage is available.

Excess Flood insurance covers damage to a building itself and can include coverage for contents and possessions within as the result of a flood, such as specified appliances and equipment, as well as personal items like clothing, furniture and electronics.