As stated on their website “The National Flood Insurance Program (NFIP) aims to reduce the impact of flooding on private and public structures.” There’s no doubt it has provided much needed help to thousands of people in dire circumstances, and has also eased the impact on the government of administering disaster assistance. But insurance companies don’t just strive to “reduce the impact” of dire circumstances, we want to make the insured whole again. The NFIP doesn’t offer the type of flexible options “true” insurance aims to deliver. Where exactly is the NFIP falling short? And are there any other options out there for flood insurance? Spoiler alert: there is now!
Minimal flexibility with limits
NFIP limits are set at $250k for dwelling and $100k for personal property (contents). What if you need more coverage than that? The limits aren’t flexible enough to accommodate homeowners wishing to secure additional coverage for their belongings or to cover damage to a higher value home.
The definition of “flood”
This sounds easy enough. It rained a lot and now there’s water in my house! Not so fast. NFIP requires that a certain amount of typically dry land, and other surrounding houses to also be flooded if they’re going to provide assistance. What?? So, my flood insurance might not even cover me if my house floods?
“Other structures” have minimal coverage
Got a storage shed, barn, or additional garage? Got more than one? Is it loaded with expensive equipment or keepsakes? Coverage is limited to 10% of the dwelling limit, taken from the main limit of indemnity for all buildings.
There’s a 30-day waiting period
A NFIP flood insurance policy will not go into effect until 30 days after the date of purchase, with a few specific exceptions.
No “loss of use” coverage
Your home has flooded and the cleaning and repair process has begun. Where do you live during this process? Hopefully you have some generous family or friends that didn’t also get flooded, because NFIP can’t offer any help with a hotel or other accommodations, even if civil authority prevents access to the property.
NFIP is only available to participating communities
While NFIP covers many counties in the country, there are some that are not included. Some homeowners might feel lucky to be “off the hook” and don’t have to purchase flood insurance by mandate. However, many of the flood maps are out of date, so homes that appeared out of harm’s way 10 years ago, may very well be in a high-risk area today, due to changes in landscape, construction projects, erosion and of course increased frequency of flood events. Homeowners in these areas may have already experienced flooding, and want to purchase flood insurance to protect themselves in the future.
Is there a REAL insurance alternative to the government sponsored flood program? Myron Steves is proud to answer YES! A new solution to flood insurance is here. This program is not NFIP, it is privately administered. Our Residential Flood program addresses all of the pitfalls listed above and more, while providing more comprehensive protection than any other flood insurance product on the market. This program fills a desperate need and will help make you hero among your homeowner clients. Learn more about the Myron Steves Residential Flood Program.
Call today for a quote: 800.235.3817, Option 4 then Option 2