Selling Flood Insurance 101
Insurance agents are smart, and often have to think on their feet in order to respond to a variety of pushback their clients have. When it comes to flood insurance people can justify not buying a policy for any number of reasons, but that doesn’t make it any less important. When faced with these common responses, here are ways you can address these four common responses.
- “I’ve never seen a flood here I don’t need it.”
- Just because an area hasn’t flooded, does not make it immune to flooding. The fact of the matter is that between 1996 and 2019, 99% of all U.S. counties have experienced a flood. Anywhere that it rains, it can flood.
- “Am I even high risk?”
- As insurance agents your clients look to you to answer questions about their risk, because they don’t know what they don’t know. Keep in contact with your local floodplain administrator to learn when and where changes are happening. To make sure you’re ahead of the curve for your clients; sign up for email notifications when products are updated.
- "My homeowners insurance covers flood damage."
- This is a common (and dangerous) myth. Most homeowners insurance doesn’t cover flood damage, meaning your clients may not even be aware that they aren’t protected. If you know your client only has homeowners insurance, it’s worth connecting with them to show them the value of flood insurance.
- “It’s too expensive!”
- As with any long-term investment, there are going to be associated costs. Adding the cost of flood insurance on top of mortgage payments is expensive. It is important to remind your clients that just one inch of flood water can cause roughly $25,000 in damage to a home. When compared to the cost of rebuilding after a disaster, the benefits well outweigh the costs.
With flood insurance from the NFIP, your clients get peace of mind that they’re protected, and will be able to rebuild when flooding occurs.
