The Best Flood Insurance Companies
Mistakenly people believe or assume that flood insurance is much the same as
any other section on the home insurance policy. In reality, the greatest
percentage of people is not even made aware of or sold flood insurance when they
buy their policies. Even in designated flood zones, unless the bank enforces the
insurance when issuing a mortgage, many agents do not recommend flood insurance.
Further, most people do not inquire as they assume it to be on the policy or
they do not wish to spend the money on the extra premium instead believing that
a flood will never come.
Once individuals know that they require flood insurance, they then make another
assumption that they can call around and get pricing on flood insurance. While
quotes are available, all the quotes will be exactly the same as long as the
same information is provided. Thus, there is no such thing, per se, as the best
flood insurance company. All companies write their insurance policies through
the National Flood Insurance Program (NFIP) a federally created program by
Congress to enable homeowners to protect themselves with flood insurance.
So the best thing to do when forced to purchase flood insurance or when you feel
that you would benefit from having it, is to talk to your own home insurance
agent. Unless the company practices unethical insurance, you will get the same
from him/her, as you will from any other legitimate company.
In addition to the NFIP, there are private companies who offer flood insurance,
"Excess Flood Protection", for those whose homes and contents exceed the NFIP
limits of $250,000 for single dwelling homes and $100,000 for personal contents.
EFP is "Difference in Condition" insurance. That is to say that it supplements
the NFIP policy after the limits have been exceeded. The policy generally picks
up where the NFIP ends. In most, if not all circumstances, one would require a
NFIP policy prior to purchasing EFP.
While the numbers of insurers who offer the specialized flood policy are few,
some of the bigger known insurance companies are:
- Allstate, the international insurer, offers Excess Flood Protection in some
states. Information is not made public but rather obtained from calling one's
own agent and providing specifics. You will also have had to buy the original
NFIP policy through Allstate to qualify for the EFP.
- State Farm Insurance, another international insurer, offers protection in some
states. Information is not readily available, as one must call one's agent to
provide details.
- ADP Statewide Insurance in New Jersey offers an EFP through Travelers and
Selective.
- Markel American Insurance Company (www.markelamerican.com) offers their EFP
program to residents of Alabama, Arizona, California, Colorado, Mississippi,
North Carolina, Oregon, Pennsylvania, South Carolina and Virginia.
- The Chubb Group of Insurance Companies now offers an EFP in Texas, California,
Connecticut, Florida, Illinois, Massachusetts, New Jersey, New York, North
Carolina, Oklahoma, South Carolina, Virginia, Washington, Arizona, Colorado,
Delaware, Idaho, Indiana, Maine, Maryland, Michigan, Minnesota, Missouri, Ohio,
Pennsylvania, Rhode Island and Utah.
- AIG (www.aig.com) insurance offers their own EFP but no details are available.
- Many high-risk areas with severe patterns of flooding may not be eligible for
EFP. Some examples are Sacramento, California and New Orleans, Louisiana.
- In Texas, if you are not sure who to contact, you may call the Independent
Insurance Agents Agency, (www.iiat.org) a non-profit organization, to purchase
EFP through Travelers Insurance (www.travelers.com)
- National Flood Services, Inc (http://www.nfsmt.com/corporate/index.html)
offers their program to insurance companies and agents so you would need to ask
your own agent about the program.
Lastly, keep in mind that some of these companies may not allow you to phone or
send an email direct to purchase their Excess Flood Program. They may require
you to contact your own agent who will then make the necessary communications.
Looking for info on Mortgages? Check the Mortgage Site!