The NFIP defines a flood as: “A general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow.” While flooding more frequently occurs along rivers, lakes, and streams, it also occurs in coastal areas. But as we’ve seen across the U.S., it also can occur as the result of a large amount of rain or snow, even to properties not in a flood zone.
Just because you haven’t experienced a flood in the past, doesn’t mean you won’t in the future. The reality is a flood can happen to anyone, anywhere, at any time. Common flood causes include rainfall, river flow, tidal surges, topography, flood-control measures, and changes to the landscape due to building and development.
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We partner with the best in flood insurance carriers, both NFIP and private, who have innovative products to support our residential and commercial clients. We are committed to helping you protect what matters most.
To help you understand the different degrees of flood risk in your community, click here to view your local flood maps.
FEMA’s new Risk Rating 2.0 (RR 2.0) has been the biggest change in the National Flood Insurance Program (NFIP) since it began. Risk Rating 2.0 is a new pricing methodology from FEMA for flood risk. It is designed to better reflect a property’s unique flood risk while also providing rates that are easier for agents and policyholders to understand. To make the changes more equitable, FEMA will look at a property’s true risk based on flood frequency, flood types, and distance to water.
Go to https://www.fema.gov/flood-insurance/risk-rating to learn more.
Typically, a flood insurance policy can take up to 30 days to go into effect, which means there is no better time than now to put coverage in place. Contact us today to learn more about how we can you help you protect what matters most.
An NFIP policy offers protection for both building and contents loss or damage. The maximum limits available through the NFIP, as currently authorized by Congress, are as follows:
| Coverage | NFIP | Private Carriers |
| Maximum building coverage | Up to $250,000 | Up to $5,000,000 |
| Maximum contents coverage | Up to $100,000 | Up to $1,000,000 |
| Replacement cost for contents | No | Yes |
| Waiting period after purchase | 30 days | No |
| Loss of use | No | Yes |
| Can you pay in installments | No | Yes |
*Coverage varies by carrier and are subject to change.
Excess Flood coverage is designed and available for residential owners who have the maximum amount of coverage available under the NFIP but need additional excess coverage to protect their higher-valued assets.
The NFIP is a federal government program administered by the Federal Emergency Management Agency (FEMA). Private flood insurance, on the other hand, is written by private insurance carriers who are free to offer as much coverage as they want. Carriers may also include additional coverages, such as additional living expenses, which are not offered by the NFIP.
Private flood insurance is coverage with an insurance company as the risk taker meaning the company has ability to write its own policies and in some cases, offer broader coverage than the NFIP. While regulated, the private flood insurance market is not subject to the same terms and conditions as the NFIP.
No. While the NFIP was the only market for flood insurance just a few years ago, that’s no longer the case. Several insurance carriers have entered the market as risk takers, many of whom offer higher limits, additional coverages, and sometimes lower rates. To get the most bang for your buck, ask your agent to shop around for the best coverage for your needs and your hard-earned dollar.
Yes, per the Biggert-Waters Act, requires institutions to accept private flood insurance that meets both the statutory definition and the mandatory purchase requirement. A final rule, FIL-8-2019, effective July 1, 2019, established the framework for institutions to evaluate whether a flood insurance policy meets the statutory definition of private flood insurance. Please note, FHA loans are an exception although a proposed rule released in late 2020 means change may be forthcoming.
It depends. As with most insurance, there are a lot of factors that go into flood insurance rates including flood zone, elevation, distance to water, and more. Talk to your agent and ask them to shop around for the best rate, whether it be through the NFIP or a private insurance carrier.
