When someone buys a home, they want to protect it from any number of harmful phenomena. Common among these is likely weather damage. While home insurance often covers many types of weather damage, it often excludes flood coverage. Yet, many consumers want to insure their homes against floods. As a home insurance agent, what can you do to help them?
Flood insurance is often a tricky concept to explain. It occupies a unique position in both the public and private insurance marketplaces. If you write homeowners policies, then offering flood coverage might help you provide an extra perk to interested parties.
The Flood Insurance Market
Homeowners likely receive coverage for different types of weather damage. Yet, these policies usually will not include coverage for weather-related floods. Burst pipes or other leaks into the home might have coverage. However, damage from rising rivers or torrential downpours likely won't. Because of the volatile risks associated with floods, most home insurers cannot reasonably cover them.
Instead, a government-supported program called the National Flood Insurance Program (NFIP) provides the bulk of flood insurance options available in most areas. In some cases, you might be able to offer plans from private insurers. However, it's almost always better to get your package options through the NFIP. These policies come backed by the government. The program extends to most homes in communities throughout the U.S.
Indeed, it is the NFIP that creates a rule for certain homeowners to carry flood coverage. Generally, people who live in areas of high flood risk (such as river floodplains) must have coverage. The NFIP and different communities work together to establish flood zones. Depending on the zone's characteristics, residents might be required to carry coverage. However, anyone who wants a policy can usually obtain one, regardless of whether that coverage is required or not.
Your Flood Insurance Obligations
So, how do flood insurance requirements apply to your agency?
Offering these policies allows you to provide extra services. If you offer home insurance, also offering flood coverage might help with your customer retention. Customers who want flood and home insurance can get both types of policies in one place. They won't have to look elsewhere for coverage.
Furthermore, by covering a customer's full insurance needs, you can often develop cohesion between policies. Therefore, your customer won't run the risk of facing potential holes in coverage.
So, don't wait. Let Quantum Alliance help you set up a flood insurance portfolio today.