At midnight on Tuesday, the National Flood Insurance Program (NFIP) reached a critical juncture: its authority to issue new policies and renew existing ones expired. This current lapse highlights how crucial it is for brokers and agents to have access to fast, reliable Private Flood insurance solutions.
While the NFIP can still pay claims from current policies during this lapse, the inability to write new coverage or add increases or endorsements leaves home and business owners in a precarious position. The lack of available NFIP flood insurance is particularly problematic for homebuyers preparing to close on a mortgage and could lead to substantial delays or home sale cancellations if they are unable to procure the right coverage. The National Association of Realtors recorded nearly 50,000 cancelled or delayed home sale transactions during the 33-day NFIP lapse in June 2010. A similar situation occurred during the most recent NFIP lapse in 2018.
Today’s NFIP lapse underscores the importance of Private Flood insurance options, which can be issued quickly to help homebuyers meet lender requirements and ensure home and business owners are protected — especially during peak hurricane season.
Aside from being readily available during this time of federal flood program instability, procuring Private Flood insurance through a portal such as Tokio Marine Highland’s TMH2O has additional benefits, including:
- No waiting period or coinsurance penalties
- Higher limits and more comprehensive coverage
- Coverages not available through the NFIP, including additional living expense coverage and other options such as basement contents coverage
- Faster, more efficient claims processing
With the NFIP’s future uncertain, brokers and agents have the opportunity — and responsibility — to guide their clients toward reliable coverage available now.
Backed by more than 30 years of underwriting expertise, Tokio Marine Highland’s TMH2O makes it easy to quote and bind policies quickly, ensuring that homes and businesses remain protected regardless of federal program lapses. Get appointed today to gain access to THM2O’s first-rate private flood coverage at your fingertips.