Private Flood Insurance

Affordable Flood Insurance Changed In 2012

In 2012, congress reformed the NFIP program removing much of the federal subsidized funding. Called the Biggert-Waters Flood Insurance Reform Act of 2012, almost overnight flood premiums skyrocketed. Here in Massachusetts and up north in New Hampshire we saw even higher increases. Not only did FEMA and Congress miscalculate the effect of such a quick and violent financial pullback, they also failed to understand the dynamic and complicated process of properly underwriting flood risk across the United States. The result was almost instant. Premiums doubled and sometimes quadrupled! There was a real fear the flood subsidy revision would slam the brakes on the real estate market. Within months Congress revised The Biggert-Waters Act after an enormous wave of anger and economic fear.

I like to think that the real reason Congress revised the act is it hit close to home.  I like to imagine certain members with ocean and lake front homes seeing their flood insurance premiums skyrocket and getting flooded with calls from neighbors, friends and family furious that their flood insurance premiums doubled over night. The revision pulled back the drastic removal of flood insurance subsidies and created a 4 year pull back plan. Each year the increase in flood insurance premiums was capped at a maximum 25% per year for four years.

Thankfully, Private insurance carriers have returned to the market offering an alternative to the FEMA flood program. As a leading expert in flood Insurance we now offer private flood options for homeowners and business owners.

Private Flood vs. Standard NFIP Flood

Lower cost is the biggest difference between private and standard flood policies. The private flood insurance market does a better job at Underwriting each risk and then provides a better premium based on that risk. FEMA establishes flood maps and zones and then generalizes risk and exposure based on the flood maps. Though they try they’re not in the business of understanding risk and applying premium. The private competitive market brings historical expertise and knowledge, creating an environment that brings cost down based on better underwriting and flood risk analysis.

Furthermore, private residential flood offers higher building and property coverage limits. So if you’re in a high risk zone and want additional coverage beyond the $250,000 building coverage cap FEMA placed on the standard flood policy you can request it. The standard flood market requires you to buy an ‘Excess Flood’ policy outside of the standard flood policy; which would cost even more.

Save With Private Flood Insurance

Carroll Steele Insurance is one of a few independent insurance agencies in the country offering private  flood insurance in Massachusetts and New Hampshire. Not all who request coverage will qualify, but many do and can save significantly while maintaining coverage. If you’re looking for an alternative to your current residential flood insurance coverage please don’t hesitate to call or email us. You can also use our flood quote form which you can access by clicking the button below.