In the unpredictable realm of business, safeguarding your clients against unforeseen disasters is vital. When it comes to flood insurance, the National Catastrophe Insurance Program (NCIP) stands out as a beacon of comprehensive protection. In this blog, we delve into the 5 key benefits of NCIP Private Commercial Flood Insurance, shedding light on why it should be a pivotal component in your client's risk management strategy.   1. Enhanced Protection with Business Income Extra Expense Coverage Protect your client’s business with Business Income Extra Expense Coverage (also known as ..read more

If your client has a pending mortgage that requires compliance with the federal “mandatory purchase” regulation for flood insurance, your customer is often burdened with paying for the flood policy prior to closing. This causes additional out-of-pocket money for the buyer and can even derail the purchase of the home. CATcoverage.com has a solution! If your client is closing on a loan for a new home purchase or a refinance, there is now a way for the flood policy to be paid at closing and escrowed by the lender. Here’s how it works: · Complete an application and submit it for approval · Print t ..read more

It is important to review your flood insurance policy to ensure you understand how the carrier is defining flood. Definitions can vary depending on the carrier you’ve chosen. The NFIP (National Flood Insurance Program), administered by FEMA (Federal Emergency Management Administration) defines flood as follows: A general and temporary condition of partial or complete inundation of 2 or more acres of normally dry land area or of 2 or more properties (at least 1 of which is the policyholder's property... Many other private carriers have copied the NFIP’s definition of flood, as well as other de ..read more

Flooding is a major risk to homeowners and businesses in the United States, causing more than $2 billion in property damage each year. Your clients expect you to look out for their best interests, so being well-informed about flood insurance options is critical. This includes finding the best coverage, at the lowest price. Your customers deserve a better option than the NFIP. This is where private flood insurance comes into play. The Natural Catastrophe Insurance Program (NCIP) boasts broader coverage options than the NFIP, often at a lower price. Key Benefits of an NCIP Policy · Coverage Avai ..read more

Is your client’s home replacement value greater than $250,000? The NFIP’s maximum limit for non-condominium residential buildings is $250,000. Since this does not cover the average home price in the U.S., it is likely that your client’s home is valued above this limit. If this is the case, your customer should opt for an NCIP private flood insurance policy. Does your client want personal property coverage for their contents? The NFIP only offers Actual Cash Value (ACV) coverage on your client’s possessions. In addition, some items that are part of dwelling coverage, like carpeting, are also a ..read more

Standard homeowners policies do not typically provide coverage for earthquake damage. This means that in order for your client to protect their home, they must purchase a separate earthquake policy, or add coverage via an endorsement to their homeowners policy. Where can I find Earthquake Insurance for my Clients? Many insurance companies stopped providing earthquake coverage in the 1990s after projections showed the financial impact of a major earthquake. CATcoverage.com has been offering earthquake coverage for over 20 years, and continues to be a leader in natural catastrophe insurance. Do ..read more

What is Flooding? A flood can be defined as a temporary overflowing of water from a natural source on normally dry land. Let’s explore the multiple factors that can create a flood. Heavy Rainfall Intense rainfall on dry soil can often produce flooding. Most residential areas are designed to drain water into basins and reservoirs. However, prolonged heavy rainfall can cause these systems to become clogged or overburdened, and that’s when flooding can occur. During a heavy thunderstorm, rivers or streams can go from 6 inches deep to a 10-foot raging river in under an hour. Storm Surges A storm ..read more

https://youtu.be/H6_0CLyce0M FEMA’s Risk Rating 2.0 is in full swing as of April 2022, and policyholders and insurance agents alike are taking notice. At the current pace, Risk Rating 2.0 will likely have to sustain rate increases for many years to come. According to FEMA, policyholders could see price increases of up to 18%. They estimate 77% of the National Flood Insurance Program (NFIP) policyholders could see an increase of $0-$240 or more per year according to FEMA. With NFIP rates in flux, policyholders are reaching out to their insurance agents to understand why their rates are going up ..read more

Definition of a FEMA Flood Zone: Flood zones are geographic areas that FEMA has defined according to varying levels of flood risk. These zones are depicted on a community's Flood Insurance Rate Map (FIRM) or Flood Hazard Boundary Map. Each zone reflects the severity or type of flooding in the area. Flood zones are used by FEMA to determine the boundary for Special Flood Hazard Areas (SFHA), which determines where the mandatory purchase of flood insurance applies. These areas are shown on the Flood Hazard Boundary Map (FHBM) or a Flood Insurance Rate Map (FIRM). FEMA also uses flood zones for ..read more