![]() At this time, the NFIP does NOT consider private flood insurance continuous coverage. This is our biggest concern for Pre-FIRM homes in Pinellas county.Private market carriers may offer discounts if your home is newer, built to current codes, and of more solid construction.NFIP does not differentiate premium based on construction factors besides elevation.Private market carriers have their own funding, so government funding is not required.If legislators don’t approve funding the program can lapse, and current coverage may not renew. The NFIP relies on government funding and must be reinstated every few years.Private market carriers typically have shorter waiting periods, ranging from 0 to 15 days.The NFIP requires a 30 day wait if you don’t have current NFIP flood coverage. ![]() ![]() Many private flood markets are offering this important coverage for businesses which can help prevent bankruptcy.NFIP policies for commercial buildings do not provide any coverage for loss of income as a result of a building damaged or destroyed by flood.Most private flood policies are offering this important coverage.The NFIP does not offer any coverage for additional living expenses after a loss, such as hotel stay or additional food costs.Private flood markets may be able to offer higher limits of coverage and include coverage for updating your dwelling to the current building codes.In addition, the ICC claim cannot exceed the max limit for building coverage (250k for single family dwellings). The NFIP offers only $30k for the cost to elevate, demolish, or relocate your home if it’s considered substantially damaged.Increased Cost of Compliance (ICC) Coverage Options.Private flood carriers may be able to offer higher limits for detached garages, and other structures such as secondary residences, gazebos, & sheds.The NFIP limits coverage to 10% of your dwelling limit for detached garages only.Private market carriers may not require an Elevation Certificate.For homes that were built after the flood maps (Post-FIRM homes), an elevation certificate which can cost over $300 is required to determine the flood premium.Elevation Certificate (EC) May Not Be Required.Many private flood carriers are offering an endorsement for replacement cost on contents coverage.This means depreciation is taken out prior to a claim payment. With the NFIP, contents are always valued at actual cash value (ACV).Most private carriers are able to offer up to $500k or more for building coverage.The most coverage that the NFIP offers for single family dwellings is $250k for the building and $100k for contents.These carriers also are not in debt, so they do not need to surcharge their policies like the NFIP. Private market carriers have different rating techniques which may lead to more competitive premiums.NFIP premiums are the same regardless of which Write Your Own (WYO) provides the flood coverage.If you are considering moving your policy to a private market, it’s always best to contact our agents as they know the pros and cons of private flood insurance coverage. If you own property in Florida, you need to be aware of these markets and the advantages and disadvantages of moving your NFIP policy to a private market insurance company. Since then the market has evolved with many more international and Florida based carriers now offering coverage. Led by Lloyd’s of London, new markets began to appear and offer competitive premiums with superior coverage. However, many of these changes resulted in substantial premium increases for Floridians.Īround 2012 the private flood market started to play a role in state of Florida. With no way to pay the debt, Congress was forced to reform the NFIP with Biggert-Waters in 2012 and later the HFIAA in 2014. The program did its part in covering property owners for years for a reasonable premium until Hurricane Katrina (2005) and Hurricane Sandy (2012) flooded the program with $24 billion in debt. Since 1968, property owners have been turning to the federal government’s NFIP for flood insurance. These companies typically offer a competitive option to the National Flood Insurance Program (NFIP). Private flood insurance refers to flood insurance coverage provided by non-governmental, for-profit companies.
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