NFIP vs. Private Flood: Determining the Right Mix for Your Business

News Release

As NFIP reforms are debated, there have been short-term lapses in the NFIP during recent government shutdowns and widespread uncertainty in the market around the program’s future. In response to this uncertainty, the private flood market has grown an estimated 25-30% during the last year. At Assurant, we’re seeing renewed interest from agents in contracting to write private policies across residential, condo and commercial properties, and we’re actively innovating to ensure we can help agents and insureds prepare for the future of the flood market.

 

National Flood Insurance Program

Assurant Private Flood
(for Residential, Condo and Commercial Properties)

Premiums

Standardized by NFIP

Residential: Up to 10-15% in cost savings compared to NFIP

 

Condo & Commercial: Up to 25% cost savings compared to NFIP

 

Standard Coverage

Residential: Up to $250,000 building coverage and $100,000 contents coverage

 

Non-Residential: Up to $500,000 for non-residential and $500,000 contents coverage

Residential: Up to $800,000 building coverage and $250,000 contents coverage

 

Condo: Up to replacement cost or total number of units x $300,000 (whichever is less) and $150,000 in contents coverage per unit; coverage of common areas to maximum of $5,000

 

Commercial: Up to $1,000,000 building coverage and $500,000 contents coverage

 

 

 

Additional Coverage

N/A

Up to $10,000 in discretionary FlexCash for residential and commercial properties, plus excess flood coverage up to $500,000 above NFIP limits with increased coverage options for personal and real property damage

 

Waiting Period

30 days

14 days – waiting period waived for NFIP or private-to-private rollover policies

 

Continuous coverage of program

Lapses occur during government shutdowns

Continuous

 

 

 

Reliability of claims payout

Guaranteed by U.S. government

Guaranteed by Assurant, a financially secure, Fortune 500 company

 

 

Accepted by Mortgage Lenders

Yes

Yes

 

 

 

Elevation certificate required

Required for post-firm A & V zones

Uses LIDAR’s predictive risk modeling in place of elevation certificates

 

 

Availability

All states

14 states representing 80%+ of the flood market

 

 

 

Ease of application

~80 questions

~20 questions with an eligibility decision in 4 questions

 

Longevity

Assurant was a charter member of the NFIP in 1983

Assurant is one of the first companies to bring private flood products to market

 

Regulatory Expertise

Works directly with FEMA to navigate complex regulatory requirements

Works directly with FEMA to navigate complex regulatory requirements

 

 


Visit Assurant.com/flood to learn more.