Answers to Some of Your Clients’ Most Frequently Asked Questions

As an insurance agent, of course your clients have questions about flood insurance! Thankfully, you’re resourceful and know that the NFIP is the authority on flooding and selling flood insurance. Here are some frequently searched questions your clients may have about flooding and flood insurance–and answers for you to help set their minds at ease.

Where To Buy Flood Insurance?

Your clients don’t know what they don’t know, which manifests in two ways. 

First, your clients might come to the discomforting realization their homeowners or renters insurance does not cover flood damage. They don’t even know that they may be on the hook for a hefty repair bill without the proper protection. 

Second, their thoughts shift to wondering where they can buy flood insurance. That’s you, the same agent who sold them their homeowners or renters insurance policy. Your clients already know you; they simply didn’t realize the broad arsenal of tools under your belt. When you leverage existing client relationships, you assure your clients that they can protect their homes in the event of a flood. If your company doesn’t offer flood insurance, help your clients find a local provider using the NFIP’s Find a Flood Insurance Provider tool.

What Is Not Covered by Flood Insurance?

“What flood insurance does not cover” is a commonly searched question. Every insurance policy has strict rules on what is/isn’t covered. It’s no wonder your clients want to know the boundaries of a flood insurance policy. Loss not covered by flood insurance can include things such as:

• Property outside of an insured building;
• Financial losses caused by business interruption;
• Currency, precious metals, stock certificates and other valuable papers;
• Cars and most self-propelled vehicles, including their parts; and
• Personal property kept in basements. 

More about what flood insurance covers can be found at floodsmart.gov, and is also included in in the NFIP’s Standard Flood Insurance Policy Summary of Coverage.  

Can Flood Insurance Be Escrowed or Transferred?

Can flood insurance be escrowed? The short answer is yes; however, in many cases this question should be directed to your client’s lender, rather than you. 

If your client sells their home, the flood insurance policy for the building can be transferred to the new buyer. However, your client cannot transfer their existing NFIP property if they move to a new home, as the premium is specific to the individual property and its associated flood risk. If that new property already has flood insurance, the new buyer may be able to assume the existing policy.

As an insurance agent, you’re equipped to answer all your clients’ questions about flood insurance. To help you be the best agent for the job, the NFIP has resources for you to read, review, and share with your clients.