For many years, Americans had just one choice when it came to flood insurance: the government’s nationalized flood insurance program known as the National Flood Insurance Program (NFIP). Now you can get access to broader coverage at a lower price from the Natural Catastrophe Insurance Program at CATcoverage.com.
Most floods are over before property owners can prepare for them and most homeowners insurance doesn’t cover flooding.
The maximum limit of homeowners flood insurance available from the government is $250K and more than two properties or two acres of land must be inundated for the government to recognize an event as covered.
A small monthly payment now could save your client tens of thousands of dollars in the event of a flood.
VS.
NATIONAL FLOOD
INSURANCE PROGRAM
FEATURES | NCIP | NFIP | COMMENTS |
|---|---|---|---|
Compliant with State Insurance Law | ✓ | NFIP - Can ignore state consumer protection statutes. Self-regulated under federal statutes. | |
Covers Commercial Property | ✓ | ✓ | |
Additional Living Expense Available | ✓ | ||
Basement Contents Coverage Available | ✓ | NCIP - Up to certain maximums. | |
Replacement Cost on Dwelling Available | ✓ | ✓ | NFIP - Only under certain conditions. |
Replacement Cost on Contents Available | ✓ | NCIP - "New for Old" | |
Limits up to $5,000,000 | ✓ | NFIP - Only $250,000 Residential and $500,000 Commercial. | |
Stop Loss Limit up to $5,000,000 Available | ✓ | NCIP - Allows risks between $5,000,000 and $20,000,000 in values to receive a $5,000,000 limit with no coinsurance penalty. | |
Earthquake Coverage Available | ✓ | ||
Coverage Effective 15 Days After Policy Inception for the Peril of Flood | ✓ | NFIP - Requires a 30 day waiting period. | |
Waiting Period Waived for Mandatory Purchase Requirement at Loan Closing | ✓ | ✓ | |
Broad Definition of Flood | ✓ | NFIP - Requires inundation of at least 2 acres or 2 structures to trigger coverage. NCIP has no such limitation. | |
Rental Property Coverage Available | ✓ | ✓ | |
RCV on Secondary Dwellings Available | ✓ | ||
Decks Covered | ✓ | ||
Multiple Buildings Covered Under One Policy | ✓ | NFIP - You must acquire a separate policy for every structure, often creating unnecessary expense for the consumer. | |
Carports Covered | ✓ |
*Not all policies available through CATcoverage.com use the NCIP policy form.