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Talking Points

Clients have different flood insurance needs, from retirees looking to protect the life they’ve built to business owners looking to protect their income, they’re all unique. But one thing they all have in common is flood risk. Encourage your clients to protect the lives they've built with flood insurance.

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Spotlight: New homeowners

Jeff Baugh purchased flood insurance to protect his new home and young family. 

For Jeff, and other families like his, flood insurance is a small price to pay for peace of mind. Making insurance decisions to protect a new investment is an important step in buying a home. 

That’s why it’s important for insurance agents to work closely with new homebuyers and their real estate agents to make sure clients secure the necessary coverage – including flood insurance.

Added bonus: Working with new homebuyers is an opportunity to create a lasting client relationship.

View more success stories

Property owners in high-risk flood areas

Properties in a high-risk flood area (indicated as V or A Zones on flood maps) have at least a 25% chance of flooding during a 30-year mortgage.

Clients in high-risk flood areas face an increased risk. So, it is important to highlight the value of flood insurance compared to the cost of a flood event, even if it’s a minor one.

Your clients in high-risk flood zones will likely pay higher premiums and may worry about the cost, but you can help them understand the premium and share different cost-savings options and ways to reduce the cost by mitigating their risk.

Homeowners and business owners in high-risk areas with a government-backed mortgage must have flood insurance. Remind clients who are about to pay off their mortgage to keep their coverage, even when it’s no longer required. If there is a lapse in coverage, clients could end up paying more for a policy if they choose to purchase one again in the future.

Talking points: High-risk

  • Having flood insurance is a crucial step to protecting the life you’ve built.

  • Homes in a high-risk flood area, have at least a one-in-four chance of flooding during a 30-year mortgage.

  • Riverine flooding is the third costliest natural cause of property damage, behind hurricanes and earthquakes. This makes flood insurance a small price to pay for peace of mind.

  • If you have questions about cost, there are some actions you can take – such as mitigation or elevating a property – that can lower your annual premiums.

Talking points: Moderate- to low-risk

  • Purchasing flood insurance is the first step to prepare for a smooth recovery.

  • Flooding can occur anywhere, not just in communities near bodies of water.

  • From the years 2014 to 2024, one third of National Flood Insurance (NFIP) NFIP flood insurance claims came from areas located outside of high-risk areas.

  • You can purchase flood insurance if your city or town follows the NFIP’s floodplain management requirements. Following the rules helps reduce a community’s flood risk, most communities in the U.S. participate.

Talking points: Renters

Flood insurance isn’t just for homeowners. Renters make up 20%-50% of the residents in many communities. 

Encourage your clients who are renting to protect their valuables and personal property by getting a contents-only flood insurance policy.

  • Securing flood insurance can help you protect your belongings.

  • Renters insurance typically doesn’t cover flooding, and while your landlord may have flood insurance to protect the building, their insurance will not cover your personal belongings.

  • Renters flood insurance can fill the gaps in your coverage and protect your belongings, like furniture, clothes, rugs and some artwork. 

Talking points: Businesses

For business owners, the cost of a flood event can be a heavy burden. Just a few inches of water can damage walls and floors, wreck expensive equipment, ruin furniture, destroy supplies and cost thousands of dollars to repair.

Flooding can also slow business operations and revenue growth. As a result, many businesses end up having to close their doors or take on extra loans after a flood event.

  • Flood insurance provides peace of mind for business owners. Flood damage can be costly, and many business owners struggle to recover from unexpected out of pocket expenses. 

  • Floods can be emotionally and financially stressing. 

  • Recover faster and more fully with flood insurance. The NFIP offers commercial policyholders building coverage for up to $500,000 and contents coverage for up to $500,000.

  • Business owners in moderate- to low-risk areas can purchase commercial building and contents coverage to protect the building, their inventory, equipment, furniture, and other business-related items.

The NFIP Pricing Approach

The NFIP’s Pricing Approach considers specific characteristics of a property to reflect its unique flood risk. These rates are easier to understand and better reflect a property’s individual flood risk.

These factors include flood frequency, different types of flooding and how close the property is to a flooding source. It also considers property features like elevation and the cost of rebuilding.

The NFIP's Pricing Approach identifies risk by using FEMA mapping data, FEMA-produced models and tools, and industry standard catastrophe models to develop rating variables. These variables provide the data needed to accurately assess the risk at a structure level. Therefore, they can then accurately price insurance.

Knowing the true risk helps property owners make informed decisions about their coverage and helps guide appropriate mitigation actions to reduce their risk.

Yes. State Profiles provide state-specific rate analysis for all 50 states, the District of Columbia and American territories. The State Profiles also include mitigation actions that can lower the risk of flooding and, possibly, the cost of insurance.

Each state and the District of Columbia also have a data breakdown for the bar graphs, along with a short explanation that adds context. These documents can be found at on FEMA.gov. 

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