Why Flood insurance isn’t like a Homeowners’ policy

Americans have a reasonable understanding of how their Homeowners' policy works. They often expect the same coverage on their Flood policy. (Photo: iStock)

For most agents, writing a Homeowners’ policy is as easy as riding a bike. They’ve done it hundreds, if not thousands of times, they understand the coverage, they have no trouble presenting it to their clients and they could complete the application in their sleep.

Writing Flood insurance is a different matter, more like riding a bike with a flat tire.

The National Flood Insurance Program (NFIP) requires more-detailed underwriting information than a standard Homeowner’s application. Understanding the NFIP guidelines, its flood maps, elevation certificates, coverage limitations and constant legislative changes can make for a bumpy ride.

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