Why You Should Offer Flood Insurance, Even When Not Required
Posted by: Agent Hub
As a P&C insurance agent, you will often find that many people who are not required to purchase flood insurance assume that this means they don’t need to worry about flood and water damage at all. You might also discover other customers who think that standard homeowners insurance alone includes coverage for flood damage.
A core aspect of your job as an agent who sells P&C coverage is to ensure your customers understand exactly what their policies do and don’t cover, and why all homeowners should consider purchasing flood insurance. Below are some reasons why you should offer flood insurance to all of your customers, even when it is not required by law or by their mortgage companies.
1. Standard homeowners insurance does not cover flood damage.
Especially for customers who live in high-risk areas, flood insurance is of the utmost importance since their regular policies will not cover damage caused by floods.
2. Everyone lives in a flood zone—no exceptions.
Although some customers will likely tell you they aren’t in a flood zone, or were told so by their real estate agent or builder, everyone lives in some version of a flood zone. This is something many homeowners are often misinformed about. About 1 in 5 flood insurance claims come from moderate- to low-risk areas. Although some areas are at less risk for flood, having insurance that protects your investment from potential catastrophe is a smart move.
3. Not every flood makes the news.
While flash floods and mudslides are catastrophic, countless instances of flood damage occur from slow-rising water. Even a few inches of water can ruin a majority of possessions and an entire dwelling. These are vital pieces of information customers should know before making the decision to go without a flood policy.
To help customers understand the seriousness of flood risk, water damage and the benefits of flood insurance, it may be helpful to provide them with resources such as FloodSmart.gov and FEMA’s National Flood Insurance Program websites. By helping people become more informed of their risks and opportunities for coverage, they will come to see you as a reliable and trustworthy contact, and view your agency as one who values the education and protection of its policyholders.