1.Stability. The NFIP (The National Flood Insurance Program) for years has had significant financial issues and has yet to solve them, with legislators “kicking the can down the road” every time proposed reforms come up. The NFIP is fiscally not sustainable and, despite billions of dollars in prior bailouts, according to the U.S. Government Accountability Office, it owes $20+ billion to U.S. taxpayers. Private insurers offer the stability and financial strength insureds are looking for in a flood program.
2. More Coverage. NFIP offers a maximum of $250,000 of flood coverage for a structure and $100,000 maximum for contents coverage whereas with private insurers, a policyholder has the ability to purchase limits that reflect the value of his/her home. In addition, with a private flood insurance policy, you can offer broader coverage for other structures in addition to the home, basement coverage, coverage for living expenses/loss of use, and lower deductibles.
3. No Elevation Certificate Required. The NFIP requires an elevation certificate to document and confirm a home’s elevation in relation to the estimated height floodwaters may reach in the event of a major flood (particularly in a high-risk area). Private insurers do not typically require elevation certificates – no matter the flood zone. That’s because carriers have already conducted 10×10 mapping of the entire United States, which is more accurate than the flood zoning methodology used by NFIP.
4. Shorter Waiting Period for Coverage to Kick In. The waiting period to purchase flood coverage through the NFIP is 30 days. With private insurers, the waiting period can be as few as seven days.
5. Potentially Cheaper. You may be able to get flood insurance through private insurers at a lower cost. Actuarial and management consulting company Milliman, for example, found that of all the single-family homes surveyed, 77% in Florida, 69% in Louisiana, and 92% in Texas could see cheaper premiums with private insurance than with the NFIP. It’s important to note that this isn’t always the case but it’s clearly worth getting a quote! Contact us at 877-239-0067 Option 1, to get a quote over the phone.