5 Flood Insurance Hacks You Need to Know Now | Private Flood Insurance
Buying a property in a flood zone?
If you your property is in a high risk flood zone then your lender will likely require you to purchase a flood insurance policy.
Buying flood insurance?
Imagine having just one inch of water in your home, just that one inch can cause more than $25,000 of damage. Flood insurance is a way to protect your financial future and compared to twenty-five thousand plus dollars is a small price to pay for peace of mind.
How do I buy flood insurance?
Please note that there are many flood insurance options on the market currently at the time of writing this page the are somewhere around 70 different options. However if you go to your local agent (who is an expert in home and auto insurance) they will likely shop only one option. The NFIP or National flood insurance program which is the government program that started in 1973 and has enjoyed a 50 year monopoly on flood insurance. That has now changed.
What types of flood insurance options are there?
There are basically two different types of flood insurance. The Government option referred to as NFIP or FEMA and the Private flood market (which is typically one of the 40 Lloyds of London syndicates)
Isn’t Nationwide flood insurance, State Farm flood insurance, Progressive flood insurance private companies? If I buy a flood policy though then am I getting a private flood policy?
Answer: is a Solid No! If you are looking for flood insurance from any of the logos below you are basically buying the government policy that is just being resold and branded as one of these companies.
How much will flood insurance cost me?
Cost of flood insurance can vary greatly, this is because there are many variables to consider when try to get a cost for your flood insurance. Those variables are, location of the property, type of foundation, coverage amount, deductible amount, if you are shopping on the government NFIP policy or if you can get one of the many private flood insurance options.
If you want to let us shop your property for you and ensure you are getting the best flood insurance option click here.
Why would I need to buy a flood policy doesn’t my homeowner policy cover flooding?
Most standard homeowners insurance policies protect you from fire and theft which has a .01 percent of ever filing a substantial claim. Flooding is excluded (look in excursions section of your policy jacket to get the full list). The only way to get flood coverage is by a stand alone flood policy. And if your property is in a high-risk flood zone map (you can find out here). Then your lender will likely require you to purchase a flood insurance policy. One important consideration is flooding is Americas most common natural disaster and the reason that your homeowner policy excluding flooding is because they know that any property and I do mean any property has a 20% chance of flooding over a 30 year mortgage.
What type of coverage should I buy for my flood insurance policy?
There are basically two types of coverage that you should consider on any flood insurance policy. 1) building coverage and 2) contents coverage (these are all your personal items).
A good way to figure out what will be on the building coverage is to think of anything that is attached to the building (water heater, AC, Furnace, additionally windows, electrical outlets, cabinets, carpet, flooring, fire places all would usually fall under building coverage. For contents think of anything that you would put in a moving van to move into your new home. These would typically fall under the contents coverage. (Furniture, closing, electronics, exc). It is always a good practice to review your policy jacket once you purchase the policy to understand what exactly is covered.
One good thing to know is on many of the private flood insurance policies there are different coverages that you can get. Some of them are Loss of use, loss of rents, business interruption, increase cost of compliance, rate lock, flood ready, replacement cost for contents, there are more please discuss with your flood nerd to see what coverage options are available and which ones are really the best to consider.
Why is my lender telling me I need to buy flood insurance?
For some properties flood insurance is a must-have. This is because of laws that were created by the federal government that pertain to flood insurance. If a property is in a highrisk flood zone usually identified with a A/AE or V/VE on a Flood Zone Determination (FZD). You see every lender that gets federal funds. And there are few that do not. Will pull a FZD on your property and if the FZD comes back that your property is in one of the high risk flood areas then your lender is required to have their borrower purchase a flood insurance policy in order to get the loan for the property.
Should I shop around for flood insurance?
Some of the companies we mentioned earlier in this article (like progressive flood insurance) will have you believe that there is only one option for your flood coverage thought he NFIP and that all the prices will be the same. Which is a flat out lie. For progressive, geico, State Farm, Farmers there is one option: the NFIP but for you there is not. If you want to shop around google “Lloyds of London flood insurance” or “private flood insurance” and you will see the options. Or if you want a much easier way to see all your options let us shop your flood insurance. We will shop all options in your area including but not limited to the NFIP. Call us for a quote today 1-866-990-7482.
How to I get flood insurance?
You can purchase flood insurance though an agent like us or in some cases you can purchase directly from the underwriter. Although I would not recommend purchasing directly from the underwriter (at least not yet), for two reasons. Unless you know how to read a policy jacket (and actually will do so) you might be purchasing a policy that has a bunch of holes in its coverage. The Second reason we recommend working with an agent rather then going directly to the underwriter is an agent (at least a good one) will be able to compare the coverages and help guide you to purchase a flood insurance policy that will meet your needs and is there to make sure you understand the policy.
As mentioned before there are basically two types of flood coverage.
The National Flood Insurance program and the coverage limit is usually capped at $250,000.
Or the private flood insurance market, which you can google “private flood insurance” or “Lloyds of London flood insurance” or you can just fill out our intake form and we will shop all the options in your area including the Government policy.
What is the National Flood insurance Program also referred to as government option or FEMA?
The NFIP / FEMA or government program was founded back in 1970 as a way to help property owners recover from flooding, and to not over burden the emergency fund. The goal of the program was to get properties flood insurance since all of our domestic insurers, Allstate, Progresive, State Farm, Farmers didn’t have the capital to insure flooding and since they know that there is a high chance on any given year that a community will flood they simply refused to offer coverage. The NFIP (Government insurance) was to solve this coverage gap.
And with all well intended programs over the 50 year monopoly that the NFIP had on flood insurance two significant things happened.
Developers started building in flood prone areas because now they could get insurance for that property, and if they were able to pad the right pocket they could even get the map redrawn to a low risk flood zone thus removing the requirement and making flood insurance an option plus this gives ocean lining properties a heavily subsidized premiums, again with the well intended “idea” to encourage people that are in low risk flood areas (usually identified with a X-flood zone) was to greatly reduce the cost of the insurance in hopes to encourage people to buy the coverage. We have found that this primarily only is benefiting the “mapped out communities” that are right on the sea. This is the only way I can possibly explain why a barrier island is mostly an X flood zone. Look at this map.
Since there was virtually no competition the NFIP started increasing premiums by adding a bunch of significant charges. The program enjoyed a golden (Literally) years until. August 29, 2005 when Katrina hit New Orleans bringing the good times and high profits to an end. Katrina hit the monopoly hard and it had to use its borrowing capacity from the treasury then in 2012 Sandy hit the North East (primarily NJ) and the government option had to borrow more money. Bringing the program to the deficit of 25+ Billion. They started jacking up all flood insurance costs (accept the low risk area). And because of this the 2012 administration signed into law the BW12 in an effort to balance the debt.
This NFIP Reform opened up the opportunity for property owners to shop for other options for their flood insurance.
The NFIP policy is available to anyone including properties that have had multiple floods.
Coverage is accepted by all Lenders.
If your property is in a low risk flood zone you will get the best price with the NFIP subsidized (Prefered Risk Policy), flood nerds will let you know if you qualify.
Program can borrow from the taxpayers through a treasury account, so in theory taxpayers will pay for your loss if the program goes insolvent again (which it will)
Sometimes the policy is very expensive
Most insurance agents don’t write the coverage correctly since the program is very confusing and most local agents do not write enough flood insurance policies to really know how to make it benefit you and this could end up costing you more then you should pay. A good question is to ask your agent how many flood insurance policies they have anything under 700 is not an expert.
Coverage limit is capped at $250,000 for residential properties and $500,000 for commercial properties. Some claims are much more.
Program charges excessive surcharges for properties that are not your primary home (second home, rental property, or commercial properties) and these charges are not for better coverage.
Claims for a Second home, rental properties, and commercial properties will only pay on Actual Cash value meaning depreciation. The flood nerd feels that this is really unfair since you will be paying so much more for less coverage (I would recommend that you go to the private flood insurance market in this instance)
Program is so far in dept I wonder if the treasury (AKA taxpayers) will not allow homeowners to get bailed out.
Doesn’t have loss of use coverage when you are displaced from your home during the flood and repair process. MOM i’m coming home!
What is Private Flood Insurance?
The term private flood insurance is quite confusing since private companies like (Geico flood insurance, Nationwide flood insurance, Progressive flood insurance, or any of the logos below are indeed private companies but they are just reselling the NFIP or government policy under their brand. So if you are truly wanting a private flood policy you can click here to have us shop all your options.
(image of geico logos)
Private flood insurance is any other options that are not the government monopoly policy (NFIP or FEMA Policy)
Most renowned and has many underwriters options is Lloyds of London Flood Insurance and at the time of writing this there were something like 40 different types of flood insurance policies that lloyds is offering to property owners.
Other options are Swiss RE, Zurich, HCI Group, Lexington, Palamar, Trisura. Our flood Nerd guarantee is to shop all options for your property to guarantee you get the best coverage to meet your priorities needs.
The best thing about a true private flood insurance option is that typically you can save 20% – 50% over the government option. They typically don’t have a bunch of surcharges and in most case the policy is broader than the NFIP.
You can get higher limits on coverage if you desire with most of the private flood companies (speak to a flood nerd for details if you are interested in getting higher limits)
Most private flood insurance options have a shorter wait time, some as little as 10 days.
Most Private flood insurance underwriters don’t charge different rates for a second home, rental or commercial property
Accepted by all lenders (At the time of writing this FHA LOANS only allow the government policy (nepotism) however we are working to get those loans to accept the private flood policies.
Can get Loss of use coverage, Loss of rents coverage and contents coverage at Replacement cost
Some options cover pool clean out.
Lloyds of London flood policies are backed by the strongest financial institution in the world and funny thing is the government policy is buying reinsurance from Lloyds to cover their flood loss exposure so if the government is buying insurance on the flood insurance policy they are selling you why not go direct to Lloyds if you can. Speak to a flood about this option 866-990-7482
SAVE MONEY – Most private flood insurance policies are less than the government policy.
Some policies offer Replacement Cost on Claims meaning they will not depricate.
Most private flood insurance underwriters won’t take a property that has had a prior loss, however some will take the property if the loss is older than 5 years. So let the flood nerds do your shopping and see how much money we can save you.
FHA loans (to date) won’t accept private flood policies.
If you have a claim with the private flood policy you will be taken care of but they will likely non renew you leaving your only option to go back to the government policy.
If there is forecasted flooding they will shut down the are so you can’t even get a quote.
You might get used to saving money.
Cheap flood insurance
Water damage especially from a flood will likely be the largest claim you will ever file. And only a flood insurance policy will cover this loss. The issue of finding a cheaper flood insurance option can be solved by shopping around but you have to know what you are buying.
You don’t want to just get cheap coverage as in coverage that won’t really be covering your full risk just to save a dime. If you buy “cheap coverage” because you don’t think you will ever flood isn’t worth the risk. Insurance, all insurance is supposed to be there when you need it. You likely have life insurance, or health insurance. You should really think of flood insurance the same way, it is a catastrophic insurance only there when you need it most. To protect your financial future and your property investment. For many of us our home is the largest asset we have and we need to consider it as such and buy a policy that will cover it “just in case”. Only mother nature know.
There are many ways to control flood insurance cost.
The amount of coverage.
How high your deductible is.
Whether or not you have shopped all the options (or had us do)
Getting an Elevation Certificate and possibly going after a LOMA
Buying a policy even though your lender doesn’t require it.
Looking for historic maps if your home is built after 1973 it might have been built to flood compliance at time of construction (this trick only works on the NFIP or government policy)
Elevating your home out of the risk.
Maybe adding flood vents or removing lower enclosures to get the bottom flood off the rating consideration.
Best way is to have the flood nerds shop for all options to guarantee you are getting the best price.
Working with an agent who doesn’t understand flood insurance and has less then 700 flood only policies could cost you. Bottom line is flood insurance can be expensive if your agent doens’t understand all the tricks to getting a good rate with the NFIP or doesn’t shop other option on the private flood insurance markets.
Flooding in your home is more expensive than any policy. Average claim pay out per the NFIP is around $50,000 the private market is more like $75,000 (private market is higher because they cover more). Please get coverage so you are not caught wishing you had it when the water is coming into your home.
If you would like to discuss further please feel free to call the flood nerds 866-990-7482
Get your flood insurance quote; protect your property.
Protect your home, commercial, investment and belongings with an online flood insurance quote right here now. Everyone wants to be buy water, the closer the better for fishing, boating, surfing or just enjoying the views. But water in your home or business is hard to stomach not to mention afford.
If you’re required to buy flood insurance or just want additional protection for your property, BETTER FLOOD INSURANCE can help insure the largest investment you are likely to ever have.
We will shop all flood insurance options to find you a flood policy either through the National Flood Insurance Program (NFIP), Lloyds of London Flood insurance or another private flood insurance.
How much would it cost to recover your stuff after a flood?
FEMA tells us the average flood claim for a U.S. Home is about $62,247. Do you have that kind of money just sitting around to be eaten up by a flood loss?
Protect Your Investment – Buy Flood Insurance
Federal law requires some locations in high-risk flood zone maps to purchase flood insurance, and they force compliance by making your lender require flood insurance before they can close on your loan. Even if your lender is not requiring flood insurance you should still consider it. Flooding is the #1 natural disaster the U.S. faces. And 30 present of all flood claims annually are in flood zone maps that are considered low to moderate.
Your Homeowner’s policies exclude flooding as one of the events it will cover.
Flooding isn’t covered by most homeowner’s policies. Keep your head above water and buy a BETTER flood insurance policy. We will shop all the options available in your state and find the best flood insurance at the best price. b
We’ve got you covered.
Coverage you need with service you can count on.
Have confidence that your stuff is covered with the FLOOD NERDS.
If your home is in an X flood zone map. You may be eligible for flood insurance at a modest cost through the federal government.
If your property is in the A flood zone map or V flood map, it might be eligible for any number of private flood insurance policies. ONLY FLOOD NERDS will shop all available for your state. The private flood insurance options usually are 20 – 50 percent less than the government flood policy in a high-risk flood zone.
When should you buy flood insurance?
You need to have a flood insurance policy in effect prior to predicted flooding. The government flood insurance policies require a 30 day waiting period before the coverage is effective. Exceptions include if you’ve purchased a new home and the closing is in less than 30 days.
Many private flood insurance policies can be as little as 10 days; however, they will put a moratorium on new policies when flooding is forecasted in a region. This means you won’t be able to buy a policy when your property is going to flood.
Why choose BETTER FLOOD INSURANCE to help you get flood insurance?
Why choose BETTER flood insurance?
Better coverage for a small premium:
Backed by either the Federal government, Lloyds of London or other private flood companies
Cover damages not covered by homeowner’s, commercial or dwelling policies
Rates tailored to your specific homes need and risk
We are experts and ONLY work in Flood Insurance
We will shop flood insurance for you so you don’t have to and pledge to get you the best coverage at the best price.
Flood NERDS are here to help with flood insurance.
Flood Insurance Service And Claims
It’s easy to manage your policy, report a claim, or just chat about your flood insurance policy. You can reach a helpful agent at 866 990 7482.
Prepared for that rainy day with flood Insurance coverage.
Flood policies must be paid in full before they become active. Typically, payment can be rolled into your mortgage, or paid by ACH we can send you a link just ask.
Flooding is going to happen so get prepared.