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Private Flood Insurance or FEMA-NFIP?

Updated: Jan 31, 2023

9 reasons you may be happier with Private Flood Insurance

This is fast becoming a preferred option for policyholders who have relied on the National Flood Insurance Program (NFIP). Here’s a summary of the main advantages of private flood vs. NFIP to help you determine which clients could benefit more from a private flood policy.

Many policyholders fit well within the bounds imposed by the FEMA-administered NFIP, but certain property owners find that federal flood cover falls far short of their coverage needs. The benefits of private flood over NFIP coverage may help you decide if your renewals are better suited to a private insurance:

1. Policy customization

Unlike the NFIP’s one-size-fits-all policy, private flood allows carriers to write unique policies or adjust limits.

2. Higher coverage limits

NFIP caps coverage at $250,000 building/ $100,000 property, while private flood can cover into the millions.

3. Faster time-to-coverage

Private policies often go into effect in under a week, as opposed to the NFIP’s 30-day wait for coverage.

4. Broader definition of flood

The insured find comfort in the simpler definition of what constitutes a flood found in private policies.

5. Coverage for additional structures

Private policies tend to include wider coverage of additional structures on the premises.

6. Alternative accommodation coverage

The NFIP offers zero coverage for living expenses, whereas private policies generally include some coverage during repair.

7. Broader coverage for personal property

Private policies generally allow greater property coverage vs the NFIP’s long “property not covered” list.

8. Competitive rates

While the NFIP rate structure is set by the government, the private coverage market is competitive, which drives rates down.

9. Less administrative hassles

Private flood often does not require a flood or elevation certificate, and quotes can be prepared in seconds.

Our advice? Contact us and let us help you personalize your coverage so that you get coverage that corresponds to your real flood risks and unique coverage needs.

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