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Make Sure Your Clients Renew Their Flood Insurance Policy

Don’t let your clients make the mistake of letting their flood insurance policy lapse due to a lack of flood events in their area, or because their property has never flooded before...
June 21, 2016

Don’t let your clients make the mistake of letting their flood insurance policy lapse due to a lack of flood events in their area, or because their property has never flooded before. The National Flood Insurance Program (NFIP) has some tips for agents to consider:

Clients should know that after a policy lapse, they could lose more than the peace of mind that their home is protected from the high cost of flooding: they could lose out on premium savings if they pay subsidized or grandfathered rates. When your client’s property is newly mapped into a high-risk area, the Federal Emergency Management Agency’s Newly Mapped procedure helps reduce the financial impact of the map change. However, to continue to be rated with this option, your client must maintain coverage. If the policy lapses for more than 90 days, Newly Mapped rates are no longer available.

In addition, grandfathered rates available to a pre-FIRM property in a high-risk area apply only with continuous coverage. If the policy lapses, it must be reissued at full-risk rates. Maintaining continuous coverage offers real benefits that can be passed on to the new property owners. When your clients sell a property, they can transfer their policy to the purchaser, including its Newly Mapped or grandfathered rating.


For flood risk and flood insurance information and access to tools and resources to help you have the flood talk, visit Agents.FloodSmart.gov. Sign up to receive free leads through the FloodSmart Agent Referral Program.