Commissioner Causey urges homeowners to obtain flood insurance as FEMA unveils new direct purchase option

Insurance Commissioner Mike Causey renewed his plea for North Carolina homeowners to buy flood insurance. The recommendation comes as the Federal Emergency Management Agency initiated a new program that would allow consumers to buy flood insurance directly through its website.

“You’ve often heard me use the phrase, if it rains at your house, you need flood insurance,” Commissioner Causey said. “Now, it’s easier than ever for consumers to purchase coverage through the National Flood Insurance Program (NFIP).

The new direct purchase option lets consumers buy flood insurance faster and easier. FloodSmart.gov allows buyers to explore flood insurance options, connect with a licensed agent, and purchase directly online. 

“Homeowners’ insurance policies do not cover damage from flooding,” Commissioner Causey reminded consumers. “Being able to buy flood insurance directly from the NFIP gives consumers another option and hopefully will lead to more people obtaining coverage.”

If you live in a flood plain, your mortgage company may require flood insurance. However, in recent years, flooding has occurred even in areas outside of designated flood plains. 

Being able to purchase a flood policy directly from the NFIP works for some people, but working with an insurance agent will remain a better option for others. One advantage to purchasing through an agent could be the ability to split annual premiums into monthly payments. 

An agent can also verify that your property details are accurate on the application and walk you through the specifics of your coverage. The NFIP caps coverage for residential properties at $250,000 for the building and $100,000 for contents. If your property or contents are worth more than that, an agent can help you find more coverage in the private market.

Because the NFIP sets the rates for its flood coverage, the premium will be the same whether it is purchased directly from the NFIP or through an agent.

The NFIP’s website has a list of participating insurers that write NFIP flood insurance and a list of agencies that sell flood insurance. If an agent is interested in becoming eligible to sell NFIP flood insurance, information about how to do that at the following link: Become a Flood Insurance Agent | Agents National Flood Insurance Program.

For more information about federal flood insurance, contact the NFIP at 800-427-4661 or go to www.floodsmart.gov.

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