FAQ

NFIP: The NFIP is a federal program administered by the Federal Emergency Management Agency (FEMA). It is the primary provider of flood insurance in the United States.

Private Flood Insurance: Private flood insurance is offered by private insurance companies, not backed by the federal government. These policies are provided by a variety of insurance carriers.

NFIP: NFIP policies have fixed rates based on factors like your property's location, type, and elevation. They do not take individual risk factors into account, which can result in underpricing or overpricing in some cases.

Private Flood Insurance: Private insurers underwrite policies based on a more detailed analysis of individual risk factors, which can lead to more accurate and competitive pricing. This may result in cost savings for some policyholders.

NFIP: NFIP policies have standardized terms and coverage options. They may not provide as much flexibility in tailoring coverage to individual needs.

Private Flood Insurance: Private insurers offer more customizable coverage options, allowing policyholders to tailor their policies to meet their unique needs. This includes options for additional living expenses, loss of use, and loss of business income.

NFIP: The NFIP offers limited coverage, with maximum limits of $250,000 for dwelling coverage and $100,000 for contents coverage. For some commercial properties, the maximum coverage limit is $500,000 for both the building and its contents.

Private Flood Insurance: Private insurers may offer higher coverage limits to better meet the specific needs of policyholders, often exceeding the NFIP limits. This allows for more comprehensive protection, especially for high-value properties.

NFIP: The NFIP has a specific claims process that must be followed, which may not be as streamlined as some private insurers' claims processes. NFIP claims can sometimes take longer to process.

Private Flood Insurance: Private insurers typically have a more streamlined and efficient claims process, making it easier for policyholders to navigate and receive compensation after a flood event.

NFIP: NFIP policies are generally available to properties in communities that participate in the NFIP. The availability of coverage may be limited in some high-risk areas.

Private Flood Insurance: Private insurers have more flexibility in underwriting criteria and may offer coverage to properties in areas where the NFIP doesn't provide coverage. They may also offer excess flood insurance to supplement NFIP policies.

Flood policies can generally be transferred to new property owners when a property is sold. This can be a selling point for properties in flood-prone areas.