As flooding events across the country continue to increase in frequency and severity, you need a trusted resource for competitive, stable flood insurance markets to help mitigate your clients’ risks. Tokio Marine Highland, boasting more than 25 years of deep flood underwriting expertise and best-in-class service, offers specialized primary and excess flood solutions that you can confidently present to your customers.
Going into 2023, here are our key tips you’ll want to keep in mind when speaking to your clients about property risk management and the importance of flood insurance:
1. Offer It.
When agents and brokers talk with their clients about home or business insurance options, they should take the opportunity to also offer flood insurance as part of a comprehensive solution. Be sure to include a flood insurance quote from the beginning to show your clients that you fully understand the importance of adequately insuring their assets. Don’t wait for another broker to offer something that you don’t!
2. Discuss The Options.
Having a working dialogue with your insured is crucial – if you don’t speak about flood with your client, you won’t sell flood to your client. Your clients should understand that their properties are far more likely to flood than to experience a fire or any other type of loss. There are more flood insurance options available in the private market today that offer higher limits and broader coverages than the National Flood Insurance Program. Reviewing each client’s specific needs and reviewing the available options with them will help you better educate, prepare, and protect them from future risk.
3. Talk About Property Values.
It’s important for agents to recognize that property values are on the rise, which need to be met with adequate coverage. However, the basic limits offered by the National Flood Insurance Program typically don’t come close to reaching the actual replacement cost of buildings today – so obtaining more high-quality coverage from the private market is becoming increasingly attractive, if not necessary.
4. Discuss Costs to Rebuild.
When offering flood insurance, it is worth discussing the costs to repair damage and rebuild with your client. Costs for raw materials and labor are steadily increasing, often making the minimum required coverage insufficient for covering total costs. Should your client’s property experience a loss from a flood, the additional coverage available from the private market will be beneficial for meeting rising repair costs and protecting their savings.
5. Consider Relocation Costs and Loss of Income.
The National Flood Insurance Program does not offer ALE (Additional Living Expense) or BI (Business Interruption) coverage, which can be added to Tokio Marine Highland’s private flood policies. This beneficial coverage supports the additional expenses for temporary relocation or loss of income incurred while damage is being repaired.
6. Remember: Floods Happen Everywhere!
Where it rains, it can flood. Catastrophic flooding events occur annually across the country and in areas that have not historically been impacted. Just because it hasn’t flooded in your neighborhood in the past doesn’t mean that it won’t flood now. It’s necessary for agents, brokers, and consumers to fully understand the importance of carrying proper flood coverage to adequately protect valuable, hard-earned assets.
Tokio Marine Highland looks forward to supporting your clients’ flood insurance needs throughout 2023 and beyond, and we welcome the opportunity to discuss our programs with you in more detail. Contact us at PrivateFloodSolution@tmhighland.com to get in touch with our team, and follow our Private Flood Insurance page on LinkedIn for more flood news, tips, and information.