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What You May be Missing even with National Flood Insurance


The National Flood Insurance Act was created in 1968 to protect home and property owners in flood-prone areas.

Although home owners in designated flood zones may have purchased NFIA insurance protection for physical damages incurred directly from what the Federal government defines as a flood, the coverage includes listed property only and does not extend to particular losses that include:

  • earth movement – even earthquakes, landslides, land subsidence, sinkholes and erosion that are caused by floods

  • loss of use or access to covered property

  • temporary housing while property is being rebuilt or repaired

  • business interruption losses

  • lawns, trees, shrubs, fences and other property that is not inside of the structure


Why You May Want to Consider Private Flood Insurance



While earthquake and other earth movement-related insurance may be something to investigate across the board, when it comes to losses caused directly by flooding, there are further options. Accessible to homeowners as well as business owners, private flood insurance is attractive for those that have coverage through the NFI due to the comparably low limits that are provided in the national program.

In the event an insured property has actual cash value or replacement cost that exceeds the NFLIP limits, excess flood insurance would be something to explore. Moreover, since the NFLIP does not provide coverage for fiscal losses like business interruption and additional living expenses, standard flood insurance could be the coverage solution.

To sum it up, it’s important for all home and property owners to be aware of their status in regard to the federal definition of a flood-prone area. If you reside in a place designated as a flood zone, purchasing the national flood policy should be a priority. In addition, care should be taken to assess the policy to see if related limits and coverage are adequate for your needs.  



PRIME Insurance is a three-generation family-run independent agency. We’re proud to partner with many of the leading underwriters – recognized companies like ACE, AmTRUST, ASI, ASSURANT, CHUBB, CNA, Employers, FOREMOST, Liberty Mutual, MetLife, PROGRESSIVE, Safeco, StillWater, Travelers, USLI, ZURICH and more. This gives us the ability to provide all forms of nationwide coverage and bonds at competitively lowest quotes. Visit us on our online insurance website or email us at PRIME [at] primeins [dot] com or call us at 732-886-5751 and HAVE A PRIME DAY™!


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