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The National Flood Insurance Program: What Your Clients Need to Know

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The end of the year has quickly passed, meaning it’s the perfect time to contact your clients to make sure they are prepared for a flood event in 2023 and beyond. As we’ve seen with massive weather-related disasters like Hurricane Ida, flood insurance and other mitigation efforts are critical in helping people protect their homes and families. 

Whether you’re new to selling flood insurance or are an experienced agent, the National Flood Insurance Program (NFIP) are here to support you. 

Our team has pulled together some of the most important information your clients need to know: 

What is the NFIP?

  • The NFIP was created in 1968 to help property owners and communities prevent and recover from flooding. 
  • Participating communities agree to enforce local laws that reduce the risk of flood damage. In return, residents receive access to federal flood insurance and, in some cases, discounts on their premiums. 
  • The NFIP offers coverage not only to owners of single-family homes but also to those living in condos, manufactured homes and rental properties.

The Difference Between Flood Insurance and Federal Disaster Assistance

  • Flood insurance is in effect 365 days and will cover flooding even when there’s not a presidential disaster declaration in place. 
  • Federal disaster assistance is subject to a presidential disaster declaration, and survivors must register and be eligible for various types of federal aid in the form of loans and grants. Federal disaster loans are low-interest loans that must be repaid.

Why Do You Need Flood Insurance? 

  • Recovery. Peace of mind. Rebuilding for the future. Flood insurance allows property owners, renters and businesses to move forward after a flood. Watch our latest Survivor Story for a real-world example.

What Determines Flood Risk?

  • Your flood zone is not the only factor that determines your flood risk. Many other factors, such as recent construction, fires, a breached dam, or oversaturated land, can lead to flooding. 

Homeowners & Renters Insurance

  • Most homeowners insurance does not cover flood damage.
  • Renter’s insurance typically covers damage or loss from threats such as fire, smoke, windstorms, lighting, hail, rain and snow damage, theft, and vandalism. Unfortunately, it usually doesn’t cover flood damage—and flooding is the most common and most costly disaster in the United States. 

Common Myths

  • You can’t buy flood insurance if you live in a high-risk flood area.
  • Get the amount of flood coverage you can afford now.
  • Disaster assistance is the same as flood insurance.
  • Federal flood insurance can be purchased only directly through the NFIP.
  • Wind-driven rain is considered flooding.

Need more information to share with your clients? We’ve got you covered with our top publications and resources from 2022. Use them to help homeowners, renters and business owners kickoff 2023 without gaps in coverage: