The Who/What/When/Why/Where of Flood Insurance
Flood insurance is an essential part of protecting homes and businesses from the devastating effects of flooding. As an insurance agent, understanding how your clients think (or don’t think) about how flood insurance works can help you better meet their needs.
Who needs flood insurance?
In short, everyone. Flooding isn’t something that only one group of people faces, it’s something that is found in every state and territory in the nation. As a result, everyone can benefit from flood insurance!
Some of your potential clients may look simply at the bottom line: if they’re not in a high- to higher-risk area in which flood insurance is mandated, they might not be interested in buying a flood insurance policy. Remind them that between 2014 and 2018 , 40% of all NFIP flood insurance claims were from policyholders outside of high-risk areas.
What Is flood insurance?
Flood insurance is insurance that covers damage caused by flooding, such as floods caused by heavy rains, hurricanes, dam failures or overflowing rivers. Unbeknownst to many, standard homeowners or renters insurance typically does not cover flood damage, which can leave your clients with a hefty bill if they’re unprepared.
Flood insurance is a valuable tool, bringing your clients peace of mind knowing they can rebuild their homes and their lives after a flood.
When do I need flood insurance?
Waiting until it’s raining is too late; your clients need flood insurance today. Like many insurance policies, flood insurance has a waiting period between when the policy is purchased and when it applies. If your clients can see a storm, it’s already too late to buy the protection they need. Before flooding finds them, talk to your clients about flood insurance and make sure they get insured.
Why buy flood insurance?
When your clients ask why they should buy another form of insurance, they just don’t know how expensive flooding can be. It’s not only costly, but the process of rebuilding can be stressful and slow, all things you can alleviate for your client by stressing the importance of protecting the lives they’ve built with a policy.
Where do I sell flood insurance?
This last part, that’s all you. You have told your clients about the importance of flood insurance, you’ve told them their risk and how they can benefit from a policy, now bring it all in. If your insurance agency doesn’t sell flood insurance, you can still support your clients by sharing the NFIP’s insurance provider locator tool to connect them with agents in their area.
