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Flood Safety Awareness Week Is March 14-18th 2011

Many Americans are still unaware that flood damage is not covered by their homeowner's insurance policy. Others are in denial about the serious flood...
March 10, 2011

Why sell flood insurance? Because your clients need flood coverage!

Many Americans are still unaware that flood damage is not covered by their homeowner's insurance policy. Others are in denial about the serious flood risks to which they are exposed. Consider the following statistics:

  • Floods are the nation's #1 natural disaster.
  • About 25 percent of all paid claims are from low to moderate risk areas, yet most residents in these areas do not have flood insurance.
    In high-risk (SFHAs) areas, there is a 26% chance of flooding over a 30 year mortgage, while there is about only a 10% chance of a fire. 
  • Conservative estimates show, however, that only one-third to one-half of residents in these areas have flood insurance.
  • For many flood disasters in the past few years, only 10 to 20% of the victims had flood insurance coverage. The others had to rely on low-interest loans, tax write-offs, savings, or taxpayer-funded Federal disaster assistance to help them recover.

Cross-Selling Fosters Growth. You have established strong, trusting relationships with your clients. You know the types of products they want and the levels of protection they may need. By adding flood insurance to your portfolio, you can further tailor coverage for each client's unique situation. This opens the door to increased sales potential, while deepening the value of your client relationships. After all, when clients know they can come to you for all of their insurance needs, why would they go anywhere else?

Options Lower E&O Exposure. Protecting your clients is your business. Your clients count on you to keep them informed of their protection options. In the long run, this also protects you. The top two E&O errors are not offering coverage, and not offering the right amount of coverage. By making sure your clients have access to all of their protection options, you can protect yourself and your agency from costly lawsuits.

The PIA/Hartford Flood Program. Since 2004, PIA and The Hartford have joined together to provide PIA member agents the opportunity to offer your customers flood insurance through The Hartford, a premier WYO company. The program is available to PIA members and their policyholders in all 50 states, the District of Columbia and Puerto Rico. The Hartford Flood program offers an easy enrollment process and extremely competitive commissions. They have two plan offerings for PIA members: The Hartford's Standard program and the Flood Solutions program, which simplifies the sale of flood insurance because the Hartford's Flood Insurance Processing Center does most of the work.

Click here for more information about the PIA/Hartford flood program or contact Karen Piacenta of The Hartford at (860) 757-1984 or

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