FREQUENTLY ASKED QUESTIONS
What are the eligibility requirements for the Private Client Flood insurance program?
TFIA's Private Client Flood policies are only offered in: AL, AZ, CA, CO, CT, DE, FL (Coverage NOT available in Monroe county), GA, HI, IA, IL, IN, KS, MA, MD, ME, MI, MS, NC, NE, NH, NJ, NM, OH, OK, OR, PA, RI, SC, TX, VA, VT, WA, WI, WV
Properties eligible for coverage are one unit residential structures valued at over $1,000,000.
Private Market Flood coverage is not available for properties located in CBRA areas, non-participating FEMA communities, mobile homes, or condominium units.
Other properties not eligible for coverage include: properties that have experienced more than one flood loss within the past ten years, properties with unrepaired flood damage, any property that has been designated by FEMA as a Severe Repetitive Loss property, and properties that have been designated by a duly constituted State or local authority to be in violation of State or local floodplain management regulations (Section 1316).
A $250,000 deductible option is not available for buildings currently insured by a Lexington Excess flood policy.
How does the Private Client Flood policy differ from the NFIP/FEMA policy?
The Private Market Flood insurance policy includes the same coverage as the NFIP policy. Underwriters agree that in no event would a loss be denied under the Private Market Flood policy that would have been settled under the FEMA National Flood Insurance program Standard Flood Insurance policy Dwelling form. In fact, the two programs even utilize the same claims adjusters.
Unlike the NFIP, all Private Client Flood policies automatically include a one year Rate-Lock endorsement that locks in the insured’s rate at the first renewal, as well as Private Client Flood’s innovative FloodFLEX endorsement (10%), designed to reduce the out of pocket expenses not covered under traditional flood insurance.
What is FloodFLEX?
FloodFLEX, is an innovative endorsement designed to reduce the out of pocket expenses not covered by traditional flood insurance. FloodFLEX is an additional supplemental loss payment that is based entirely upon the amount of the building loss settlement the insured would normally receive for their policy. FloodFLEX, endorses the policy to increase the loss payable for COVERAGE A – BUILDING COVERAGE, after the application of the Building Deductible found on the Declarations Page, by 10 (included), 25, 50 or 100 percent.
This additional loss payment can be used at the insured’s discretion for any purpose.
It’s your money, use it for what YOU need it for.
When should I submit an application?
You may submit an application at any time by uploading the insured’s current high value Homeowner’s insurance policy declaration page, the premium estimate print out, a copy of the elevation certificate (if applicable), and pictures of the building using our Application Upload feature.
How can I cancel a Private Client Flood policy?
Private Client Flood policies can only be canceled for twenty-one distinct reasons. A full list reasons and their procedures can be found here.
Does Private Client Flood write insurance in low-risk flood zones like zone B, C or X?
Yes! You can quote properties in a B, C, or X flood zone using the premium indicator. These rates do not apply if the flood policy is required by a mortgage lender.
What are the coverage limits of a Private Client Flood policy?
The coverage limits for a Private Client Flood insurance policy are as follows:
· $10,000,000 of building coverage for a residential dwelling.
· $5,000,000 of contents coverage for a residential dwelling.
· $5,000,000 of FloodFLEX coverage for a residential dwelling
What is excess flood insurance?
An excess flood insurance policy allows a policyholder to cover a building's value when it exceeds the maximum available limits ($250,000) of the NFIP or other private carrier. Private Client Flood eliminates the need for excess flood insurance by creating a one policy solution that allows the insured to carry limits of up to $10,000,000 of building coverage and a combined total limit of $20,000,000 of building, contents, and FloodFLEX limits.
What constitutes a prior loss?
A prior loss is any loss or damage to the structure due to the peril of flood.
What is the waiting period for a Private Client Flood policy to become effective?
It depends. For a loan closing, there is a 0 day wait, provided that the insurance is required as part of the loan by a federally regulated mortgage company or licensed mortgage broker. Payments from any other source must be received no later than 10 days following the date of application, and would require evidence of closing and the lender's purchase requirement in the event of a loss within the first 30 days of the Policy.
For any other reason for insurance, the wait is 14 days from the date payment is received.
Are there any additional taxes and/or fees?
The taxes and fees for the policyholder's state are automatically calculated by the premium indicator and can be found as the final line item on the premium breakdown on your finalized quote prepared by The Flood Insurance Agency.
Can my client add Rate-Lock to their existing Private Market Flood policy?
Additional Rate-Lock options can be selected at the renewal of an existing Private Client Flood policy, but cannot be purchased mid-term.
Can all insurance agents and brokers sell Private Client Flood policies?
Only a select group of insurance agents and brokers registered with The Flood Insurance Agency can sell Private Client Flood policies. Please complete an agent registration application or call us at 1-877-356-6348 to find out more.
How long is the policy period of a private flood policy?
1 year (12 months). Though additional Rate-Lock options are available that allow a policyholder to lock in their rates for two or three years.
What forms of payment do you accept?