Currently, your homeowners policy probably excludes the peril of rising water. If you want flood coverage, you have to buy a separate policy.
The Federal Emergency Management Agency (FEMA) has controlled the flood insurance market through the National Flood Insurance Program (NFIP). However, the NFIP has created billions of dollars of debt and has regularly borrowed money from the U.S. Treasury. In 2017, the U.S. Congress cancelled about $16 billion of NFIP debt to keep the NFIP open. As a result, many changes to flood insurance are expected.
NFIP rates will continue to rise, the preferred risk program will be phased out, and the private markets will continue to enter the flood market. Our prediction is by the end of 2020, there will be insurance companies offering a flood insurance endorsement to their homeowners policy. The endorsement will offer superior protection at a lower cost. Stay tuned-in, as flood insurance will be experiencing many changes in the near future.
Independent Insurance Counselors offers complimentary quotes on Flood Insurance from multiple insurance carriers so you can protect what matters most in life.