The 30-Day Waiting Period
Your clients worked for their homes and have taken the extra steps to protect the lives they’ve built with flood insurance. Now it’s time they renew their policies and ensure their hard work won't be washed away. As they get ready to renew their flood insurance policies, it’s important to help them understand the renewal process, particularly the 30-day waiting period. In this article, we’ll explore that 30-day period, and discuss things they can consider ahead of their renewal date.
What is the 30-day waiting period?
Regardless of when someone purchases flood insurance, the 30-day waiting period is usually mandatory for both renewing and purchasing flood insurance. National Flood Insurance Program (NFIP) policies are valid for one year, with a 30-day grace period. It can be a challenge to receive immediate coverage, but your clients may be able to avoid the waiting period by changing their existing policy at or just before its renewal date.
Are there exceptions to the rule?
There are a few instances when the 30-day waiting period can be avoided, but typically they’ll have to wait the full period for their flood insurance to go into effect.
No waiting period:
- If they purchase flood insurance while making, increasing, extending or renewing their mortgage loan.
- If they change their flood insurance coverage on their insurance policy renewal bill.
- In the event of flooding after a wildfire, if a property is impacted by flooding on burned federal land and the policy is purchased within 60 days of the wildfire-containment date. Waiving the waiting period is determined at the time of claim.
1-day waiting period:
- If a home or business is newly designated to be in the high-risk flood area, and your client purchases flood insurance within the 13-month period following a map update.
What about cancelling a policy?
Flood insurance gives people peace of mind in the face of a flood disaster. If a home is damaged due to flooding, flood insurance is the only insurance policy that will cover flood damage and repairs. Before they cancel their policies, help clients understand that the climate is changing and the potential for flood disasters is increasing. Discuss ways they can mitigate their risk for flooding or reduce their coverage premium.
Everyone needs flood insurance
Floods can happen anywhere, and flood insurance keeps what matters most protected. Make sure your clients know to look out for renewal reminders from you in the weeks leading up to their renewal dates.
