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Selling Flood Insurance Builds Trust & Business

Whether your client lives near the coast or hundreds of miles inland, they are at risk for flooding...
October 9, 2013

Whether your client lives near the coast or hundreds of miles inland, they are at risk for flooding. As their agent, there are several things you should know about flood insurance and why your customer should consider purchasing a policy.

Why Flood Insurance?

Floods are the nation’s #1 natural disaster. Everyone is financially vulnerable to floods. In fact, nearly 25 percent of all National Flood Insurance Program (NFIP) flood claims come from outside mapped high-risk flood areas.

Why Don’t More Customers Ask About Flood?

Many customers don’t remember that most private market property insurance doesn’t cover flood damage. And many aren’t aware that a residential NFIP Preferred Risk Policy for properties in moderate-to-low risk areas can cost as little as $129 a year, which is negligible compared to the tens of thousands of dollars-worth of damage just a few inches of water can cause.

Why Sell Flood Insurance?

With existing property insurance customers, you’re already in good position to cross-sell flood insurance. It builds good agency-customer relationships and further rounds out each customer’s book of business with your agency.
Agents.FloodSmart.gov can help you “speak flood” with your clients. The site includes resources, such as talking points, marketing tips and interactive tools that help illustrate flood risk to your customers. Also, if you aren’t currently registered, sign-up for the free Agent Referral Program which drives free qualified leads directly to you. But don’t delay. Most policies take 30 days to go into effect, so the time to tell your customers about the availability of flood insurance is now.

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