Insurer offers new product for homeowners in the United States
Munich Reinsurance America has introduced a new insurance product in the United States that may be a benefit for some homeowners. It is a new flood insurance product designed for those living in low-to-moderate hazard flood zones in inland parts of the country. The new product will provide these homeowners with new options when it comes to flood protection, as this coverage had, for years, only been available through the National Flood Insurance Program (NFIP).
NFIP will have competition when it comes to offering flood protection
According to the National Flood Insurance Program, which accounts for the vast majority of flood protection in the country, floods are the most common natural disaster in the United States. All states have experienced flash floods over the past five years, but less than 1% of people that live inland have the flood protection that they need. NFIP data shows that those living inland with flood insurance account for more than 20% of the claims that it receives. Munich Reinsurance notes that these homeowners also account for one-third of Federal Disaster Assistance when it comes to flood damage.
Ongoing financial issues lead to growing demand for alternatives to NFIP
NFIP has been struggling to overcome serious financial problems over the past several years. These financial issues were caused by major flooding disasters that the organization has not yet recovered from. As a result, flood insurance premiums for homeowners throughout the country have been rising sharply. Federal lawmakers have worked to mitigate the rise in flood insurance premiums, but their efforts have had relatively little impact.
New flood insurance product may provide homeowners with a less expensive alternative to conventional coverage
Introducing new options for homeowners could give them some relief from the high costs associated with coverage through the National Flood Insurance Program. The product being offered by Munich Reinsurance can be attached to a homeowner’s existing insurance policy, which will eliminate the need to have separate policies or standalone insurance coverage dedicated solely to flood protection.