Five FAQs homeowners have about private flood insurance

Extreme weather events caused by El Niño are dominating today’s headlines, driving an increased interest in flood insurance. However, flood patterns across the U.S. have been changing for years, even before El Niño. For example, catastrophic flooding is no longer dominated by events located in traditional flood zones or near coastal waters, but instead is increasingly defined by heavy rainfall. As flood risks evolve, more homeowners are turning to private flood insurance – an alternative to coverage through the National Flood Insurance Program (NFIP). For real estate agents guiding their clients through the home buying process, here is some basic information that clients need to know about this option. 1. What is private flood insurance and what does it cover? Private flood insurance is a risk management tool backed by global capital markets that provides financial protection for buildings and personal property damaged by floods, helping families, communities and businesses to recover from these devastating events. 2. What are the differences between an NFIP and a private policy? The primary difference between an NFIP and a private policy is the source of capital. With an NFIP poli...