Had No losses? Why should you:
subsidize riskier properties?
repay the $20 Billion NFIP debt?
Private market flood coverage is usually placed in the Excess Lines market and regulated by each state.
It is often written by CERTAIN UNDERWRITERS AT LLOYD’S, LONDON, “A rated” by AM Best.
Private Market Flood Insurance Revolution!
The National Flood Insurance Program is not the only market to write flood insurance policies. The private market also writes flood insurance. It’s no secret that some properties have less risk than others. This market can choose the properties they want to insure, saving many property owners big-time!
How can these rates be so low?
You must qualify as a lower risk. Those with a loss tend to have repeat losses. Low rise condos have more expensive losses than high rise condos. Coastal areas have catastrophic losses. Being selective is healthy for the bulk of property owners that can qualify for this new flood insurance program.
The NFIP has a huge debt – over $20 BILLION! The new NFIP rates include huge new fees for repaying that debt. Private market policyholders avoid paying this debt.