Consumers are becoming more interested in flood protection
Agents are making note of a surge in flood insurance sales as homeowners seek protection from disastrous events. Recent storms have caused floods in several parts of the country, and many people affected by these disasters have learned that their homeowners insurance policies do not offer the protection they need. Most typical homeowners policies do not offer flood protection, which can only be found through the National Flood Insurance Program, managed by the Federal Emergency Management Agency.
Homeowners may be too slow in purchasing the flood protection that they need
Abraham Padron of SafeGuard Insurance is one among many agents that have seen increasing interest in flood insurance protection. According to Padron, many agents have been selling more flood protection, but homeowners are sluggish when it comes to purchasing this coverage before they need it. Typically, consumers take note of tropical storms heading their way and then buy insurance coverage in response. The problem, however, is that flood protection does not go into effect until 30 days after it has been purchased, and this protection is not retroactive.
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Federal insurance program continues to suffer from financial issues
With interest in flood insurance on the rise, many consumers may be better prepared for natural disasters in the future. They may not be aware of the issues associated with flood insurance, however. The National Flood Insurance Program has come under fire in recent years for its inability to overcome its massive debt. How the organization handled claims associated with Hurricane Sandy also reduced faith in the federal program. Insurance rates for coverage from the program have also been on the rise for some time, making coverage an expensive burden for homeowners.
FEMA encourages homeowners to speak to agents about flood insurance
The Federal Emergency Management Agency is urging those interested in flood protection to contact an insurance agent. These agents can provide homeowners with the information they need to make appropriate decisions about their insurance coverage. Because of this, agents are beginning to play and expanded role in the flood insurance sector.