Flood insurance is, unusual. A flood policy essentially covers one peril but it is surrounded by many unusual facts and facets that make flood coverage unlike any other. Agents must understand the uniqueness of flood to more effectively present it to clients.
The Stafford Disaster Relief Act places specific requirements on entities receiving disaster assistance. Many agents are unaware of the provisions of this Act. Failure to comply can be costly for your insureds.
What happens with there is not enough coverage from the NFIP to cover the condo association. Do the unit owners purchase their own coverage or does the association have to purchase excess coverage?
At several conferences, I have asked what procedures risk managers and insurance brokers were using to identify all flood zone properties so as to avoid the Federal disaster relief penalties. To date, not one person was aware of the problem, and the audiences included some of the larger public entity providers in the United States.
