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Top 5 Misconceptions About Offering Private Flood Insurance

Private flood insurance is a valuable tool for protecting your property against unexpected flood damage. However, there are many misconceptions about it that cause hesitation among both insurance professionals and homeowners. We're here to clear up these myths, helping insurance professionals better serve their clients and expand their market reach.

 




Misconception 1: Only Properties in High-Risk Flood Zones Need Insurance


The Reality: Floods can happen anywhere, not just in high-risk areas. In fact, many flood claims come from properties outside these zones. According to FEMA, 40% of flood insurance claims occur outside the high-risk flood areas. Private flood insurance, like the Natural Catastrophe Insurance Program (NCIP), offers comprehensive protection for all properties, providing peace of mind and financial security regardless of the flood zone.



Misconception 2: Flood Insurance Is Exorbitantly Priced


The Reality: Our NCIP offering has competitive pricing and flexible coverage options that can be tailored to meet the specific needs and budgets of property owners. This often results in significant savings compared to the NFIP.



Misconception 3: The Claims Process Is Overly Complex


The Reality: Filing a private flood insurance claim with NCIP is simple and straightforward. Both agents and insureds can easily file claims directly through our user-friendly website. Claims with the NFIP can be more complicated because there are a limited number of adjusters that have gone through the process to evaluate an NFIP loss. During a natural disaster, your NCIP clients won’t have to complete for an adjuster with other NFIP clients. 



Misconception 4: The NFIP is a Better Policy


The Reality: An NCIP private flood insurance policy typically offers more comprehensive coverage and higher limits than the NFIP. Additional coverage options include additional living expense, personal property coverage in a basement, replacement contents on contents, and more.



Misconception 5: An NFIP Policy offers Greater Assurance


The Reality: An NCIP policy is backed by highly rated carriers who have maintained an AM Best rating of no less than “Excellent” (A or A-), so you should expect reliability and a personal touch when purchasing a policy through CATcoverage.com. Also consider the shorter waiting periods and broader coverage options, an NCIP policy is a superior choice for many homeowners.

 


Grow Your Book of Business with NCIP Private Flood Insurance


By addressing these misconceptions, insurance professionals can better market and distribute private flood insurance. Providing accurate information helps clients make informed decisions, ensuring they receive the best possible protection against flood risks. Equip yourself with the facts and transform how people perceive private flood insurance, one client at a time.

 

 

*Not all policies through CATcoverage.com use the NCIP policy form.


Disclaimer: The content on this site is for general information purposes only. It is not intended to be relied on or used in place of professional advice. We do not endorse, assume responsibility for, or guarantee the accuracy of the content. All liability is expressly disclaimed.

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