Educating Policyholders about Flood Coverage

In the United States, floods are the most common natural disaster, yet sadly enough, only a small fraction of homes are covered by flood insurance. In the event of a flood, with flood insurance protection, claims are paid even if a national disaster is not declared by the President. A study conducted by the National Association of Insurance Commissioners last year revealed that 33 percent of homeowners believe – incorrectly – that flood damages are covered under a standard home-owners policy. So, in an effort to reverse misconceptions about homeowners policies and flood coverage, the NFIP turns to you, the agent, to help advise your clients on critical insurance needs and requirements. Flood insurance, the best available protection against rising water, needs to top that list.

Section 207 of the Flood Insurance Reform Act of 2004, Public Law 108-264 (Act) requires all producers selling flood insurance policies under the National Flood Insurance Program (NFIP) to be trained and educated about the NFIP so that they may properly serve their clients. The Act requires the Director of the Federal Emergency Management Agency (FEMA), in cooperation with the insurance industry, state insurance regulators, and other interested parties, to establish minimum flood insurance training requirements for producers who sell flood insurance policies.

You can complete the required FEMA-approved flood insurance course online at http://www.learninsurance.com/, click on Insurance CE and your state to enroll.