Florida homeowners have another option when it comes to flood protection
A new company has entered into the flood insurance market in Florida and will serve as an alternative to the National Flood Insurance Program (NFIP). Called TypTap Insurance, it is the first company licensed in Florida to focus exclusively on flood protection. Homeowners can use the insurer’s online platform to purchase the coverage they need. Typically the only place homeowners can find flood protection is through the federal program, but this is beginning to change.
The flood market may be a promising opportunity for insurers
The flood protection market has been controlled by the federal government for some time. NFIP was designed to protect consumers from the risks that they faced in the market. These insurers provide coverage through the program, but do not offer policies through the private market. Insurers could find new opportunities in the market, especially in Florida, where flood protection is in high demand. There are approximately 2 million homeowners insurance policies in Florida, generating some $1 billion in annual revenue through premiums. Many of these homeowners require flood protection.
The number of companies offering flood coverage in Florida is growing
TypTap Insurance is a subsidiary of the HCI Group, which also has another subsidiary that sells flood protection in Florida. This subsidiary, the Homeowners Choice Property & Casualty Insurance, began insuring flood damage in 2014. The company began offering flood protection after changes were made to NFIP, which resulted in higher premiums for those with policies through the program. Now TypTap Insurance is offering coverage as well, expanding the options that consumers in the state have.
TypTap Insurance wins approval to sell flood coverage in Florida
The Florida Office of Insurance Regulation has authorized TypTap Insurance to provide coverage, requiring it to maintain a minimum capital and surplus of $20 million. In January, the HCI Group committed $25 million to the company’s capital. TypTap Insurance is well prepared to offer coverage to homeowners, especially those that are looking for less expensive alternatives to the federal flood insurance program.