Keeping afloat with flood insurance resources

For more than 35 years, the National Flood Insurance Program (NFIP) has offered flood insurance to homeowners, renters and business owners to protect their assets, while also providing communities with strategies to reduce their flood risk.

Since 2004, the NFIP has greatly expanded efforts to educate Americans about flood insurance through the FloodSmart campaign. The campaign works to remind Americans about flood risk and directs them to their insurance agent for more information through television, online and print advertising, direct mail, public education and close collaboration with stakeholders, such as insurance companies and agents.

The insurance industry plays a key role in encouraging Americans to understand flood insurance. Because of joint efforts of the NFIP and insurance industry, the Program has seen unprecedented flood policy growth in the last two years—almost 12 percent. That means more households and businesses (more than 5 million policies in force) are protected in the event of a flood—the nation’s leading natural disaster. Despite this accomplishment, more than 50 percent of properties in high-risk areas remain unprotected. Because history and geography show that flooding in these high risk areas (or Special Flood Hazard Areas) has occurred and will occur, the NFIP is working diligently to promote 100 percent coverage in Special Flood Hazard Areas. However, flooding frequently occurs in low- to moderate-risk areas, as well. Therefore, agents can take steps to protect customers and communities by educating and highlighting the importance of coverage in all areas.

Whether you are a novice or experienced in selling flood insurance, it is essential to keep current on flood insurance information in order to sell it effectively. The FloodSmart Campaign’s resources will help you—the agent—stay current on flood insurance topics.

Agents.FloodSmart.gov is the NFIP’s most comprehensive resource designed exclusively for insurance agents. The following is an overview of the Web site, which houses many of the FloodSmart Campaign’s important information and marketing tools.

Education and training

Training not only helps to maintain your flood insurance expertise, it also keeps you on top of industry trends, allows you to meet state licensing requirements and helps you positively impact your performance—and ultimately your sales.

The NFIP offers a complete series of flood insurance training workshops, conferences and classes, some of which offer continuing education credits. On the FloodSmart agent site you’ll find details about online and classroom agent training courses, a step-by-step guide for agents who are starting to sell flood insurance and NFIP updates. Also included are key statistics and tips to address common misconceptions and assist in talking with customers.

Selling a policy

When clients purchase a flood insurance policy, they rely on their agent for information and assistance. The new Web site for agents includes tools that can help, including a downloadable NFIP Flood Insurance Manual and forms that provide important details for agents to walk through coverage options, and tips on selling flood insurance to help better prepare you in your sales effort.

Claims and services

The time after a flood can be extremely stressful. To help alleviate clients’ concerns, the NFIP offers information to simplify the claims process and provide exceptional service to policyholders in the event of a flood. Look to Agents.FloodSmart.gov for tips on what to do after a flood and details about filing a claim, and a downloadable Summary of Coverage document and Claims Handbook to help customers understand their policy coverage and navigate the claims process.

Marketing and advertising

Marketing flood insurance allows you to communicate with existing and potential customers, helps you motivate them to buy and assists in retaining them over the years. FloodSmart provides tools to tailor the NFIP’s national campaign for your local effort. You’ll be able to reach a broader audience while strengthening the impact of your message.

FloodSmart’s agent Web site provides details on building a marketing plan to help you create a strong and effective marketing strategy. The campaign offers two programs designed to strengthen your flood insurance outreach efforts. All agents are eligible and both programs are free of charge.

The Agent Co-Op Program helps you plan and execute your own flood insurance advertising campaign, provides advertising templates to expand your flood portfolio and reimburses you a portion of your advertising costs. The program reimbursement funds up to $10,000 a year, but Yellow Pages reimbursement is limited to $5,000 per year.

The Agent Referral Program provides agents with qualified leads by connecting enrolled insurance agents with consumers. Prospective customers learn about their potential flood risk and get policy cost estimates through FloodSmart’s consumer site, FloodSmart.gov, and the NFIP call center. When consumers are ready to find an agent, NFIP will connect them to you through the Agent Referral Program. Your contact information will also be added to our database when you register for free at Agents.FloodSmart.gov.

Map modernization

Flood maps are in the process of being updated as part of the nationwide Flood Map Modernization effort. Many maps need updating because of changes due to growth and development, changes to river flow and coastlines and flood mitigation efforts such as drainage systems and levees. Such updated and accurate information is essential to understand emerging flood risks, and to determine appropriate rates for flood coverage.

These maps will illustrate one’s risk for flooding and designate which properties are required by law to be protected with flood insurance. Updated maps will help communities manage flood risk more effectively, and will help property owners make more informed decisions regarding flood insurance protection.

Community officials, property owners and mortgage lenders will turn to agents for information about how new flood maps may affect the way they need to financially protect homes and businesses. Tools are available on the agent site to help you effectively convey the insurance implications of new flood maps and help clients assess their flood risk and insurance needs. These resources include key points for talking with customers, a national flood map adoption schedule, and a downloadable toolkit with outreach materials that can be tailored to fit a local community.

News and publications

News and developments about flood insurance are presented through several channels. Agents can sign up to receive campaign news by checking a box during registration for the agent site.

The campaign publishes eNewsletters several times throughout the year that highlight important information, such as current and upcoming flood insurance marketing initiatives. Another news source is News Alerts that are emailed to agents and other stakeholders on an as-needed basis. These alerts offer information at key times, such as immediately after a flood, in preparation of hurricane or west coast rainy season or when new NFIP resources are available.

The campaign also provides NFIP Updates to learn about changes to NFIP processes, procedures and claims handling, as well as updates to federal regulations.

Finally, the site offers links to a comprehensive collection of NFIP publications that are accessible online or via bulk order from FEMA’s warehouse.

Besides the agent site, www.fema.gov/business/nfip/infoa.shtm also offers information for insurance professionals, including Watermark, a newsletter issued three times per year, and the NFIP’s Customer Service line at (800) 427-4661.

The insurance industry plays a key role in encouraging customers and potential customers to adequately protect their financial investments through flood insurance. FloodSmart’s resources are designed to help you prepare yourself and your customers to address the threat of flooding by providing you with up-to-date information from the NFIP.

Flood insurance is affordable and available through 88 insurance companies in more than 21,000 participating communities nationwide. National Flood Insurance is available to renters, business owners and homeowners. The average flood insurance policy premium is around $500 a year. And in low- to moderate-risk areas, homeowners can protect their properties with lower-cost Preferred Risk Policies (PRPs) that start at just $112 a year.

David I. Maurstad serves as director of FEMA’s Mitigation Division and Federal Insurance Administrator. His areas of oversight include the National Flood Insurance Program, the National Earthquake Hazards Reduction Program, the National Dam Safety Program and the National Hurricane Program. He has nearly 25 years of experience as an insurance agent and is a former Nebraska Young Agent of the Year.