While the NFIP was the only market for flood insurance just a few years ago, that’s no longer the case. Q: Doesn’t all flood insurance go through the NFIP anyway?Ī: No. While regulated, the private flood insurance market is not subject to the same terms and conditions as the NFIP. Q: What is the biggest benefit of private flood insurance?Ī: Private flood insurance is coverage with an insurance company as the risk taker meaning the company has ability to write its own policies and in some cases, offer broader coverage than the NFIP. Carriers may also include additional coverages, such as additional living expenses, which are not offered by the NFIP.
#NFIP COVERAGE A FREE#
Private flood insurance, on the other hand, is written by private insurance carriers who are free to offer as much coverage as they want. Q: What’s the main difference between NFIP and private flood insurance ?Ī: The NFIP is a federal government program administered by the Federal Emergency Management Agency (FEMA). Hopefully these answers will help clear up any misconceptions. That’s why we rounded up five of the most common questions we get about the government’s flood insurance program and private flood insurance. ‘Doesn’t FEMA cover floods?’ ‘Doesn’t the federal government pay if I’m flooded?’ And if people even know about it, private flood insurance is often misconstrued as a program that’s subsidized by the federal government. When it comes to flood insurance, it seems there’s a lot of confusion.
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