Be Prepared For The Next Hurricane

Private Market Flood Insurance

According to researchers, the 2022 hurricane season is expected to be “above average.” They are projecting 14-18 tropical storms & hurricanes. The Atlantic hurricane season runs from June 1 – November 30th.

Here is another fun tidbit for you… The National Flood Insurance Program (NFIP) is in debt. After a brutal year last year, the NFIP currently owes nearly $25 Billion to the US Treasury and taxpayers for covering claims. Hurricane Florence is not included in this amount. So you can bet your flood policy will be going up AGAIN this year.

It was estimated that over one million homes did not carry flood insurance that devastated the Carolinas. Many of these homes that were inundated with flood waters were not even in a special flood hazard area. They could have purchased a flood policy for as little as $500 per year. Just a few inches of water in your home can cause TENS of thousands of dollars. A few feet could be over $100,000!

Flood Is Excluded On Your Homeowner’s Policy

Please remember that the peril of FLOOD is excluded on your Homeowner’s policy. You must purchase a separate flood policy to be covered.

There is an alternative to the NFIP – Private Market Flood Insurance. We represent over a DOZEN carriers that write flood insurance outside of the federally backed NFIP program for a fraction of the cost. We have seen tremendous savings of 25-75% or more. We recently saved a client $6,500 on their flood insurance! It is the same coverage, same policy, same underwriting – just a whole lot less. And yes… most banks accept Private Market Flood.

How We Helped A Commercial Client With Flood Insurance

We have a commercial client with a building 500 feet from the ocean. They were paying over $43,000 in flood premiums and their premium kept going higher every year. This year, we re-wrote them in the private market, increased their coverage, and the final premium was $20,004. The savings are just mind-blowing!

We also work with several real estate agents that have home listings on the coast. They have a difficult time finding a home buyer that can afford high flood insurance premiums. We have been able to help get these properties sold by getting drastically reduced flood premiums.

Private Market Flood Insurance

If you are in flood zone VE, (right on the beach) we can usually save you up to 50% or MORE. If you are in a flood zone AE, we can typically save you up to 75% or MORE. We do not require that you have an Elevation Certificate, although if your home is elevated, an elevation certificate can help reduce the price.

NFIP/FEMA has gone crazy. We have a client whose flood insurance premium went up respectively since 2015 $4,003; $5,477; $7462 and to $10,258 this year. We wrote him a Private Market Flood Insurance policy for $3,102. These are life-changing savings.

Private Market Flood – Q & A

If I Buy A Private Flood Policy, Can I Switch Back To A Federal Flood Policy Later?

Yes, you can ALWAYS switch back to a NFIP policy. You would, however, lose your grandfathered policy and your subsidized rate, so it may be more expensive to switch back. However, you could keep your NFIP policy and lower the dwelling amount to the minimum. The cost for the policy is about $500 or less. This way you would not lose your grandfathered rate or subsidized rate if you ever wanted to switch back.

How Can I Tell If A Flood Insurer Is Financially Sound?

All of the private market carriers we use are rated A+ by AM Best.

Do Private Flood Policies Have A Waiting Period As Federal Policies Do?

Yes, however, they are only 10-15 days instead of 30 days in most cases. If you are buying a home and have a bank loan, there is NO waiting period. If you have an existing flood policy in place, there is NO waiting period.

Give us a call to quote your Private Market Flood Insurance in one of over a dozen Private Markets that we represent. All we need is your address!

Call us today (508) 997-3321 to see how much money we can save you.