Why United Flood Insurance Is More Competitive Than the NFIP
The NFIP came about in the 1960s after historic floods wiped away many homes. At the time, private insurance companies refused to offer flood insurance at an affordable cost because it was deemed too risky, causing the government to overspend on disaster relief. FEMA mapped out flood zones and required all homes in them to purchase flood insurance from the NFIP through private insurance companies to reduce the costs of disaster relief. While well-intentioned, the program has several flaws that have lead to the heavily inflated premiums today.
Private Insurance Fees
The NFIP pays private agencies a fee to offer their program, who don’t have to take on any of the risk. In fact, the NFIP will pay those companies another fee for each claim, meaning those private companies actually make money when you suffer damages. When Hurricane Sandy ravaged the east coast, the NFIP paid out over 400 million dollars to private insurance companies in fees before even paying a single claim. Unlike our competitors, United Flood does not profit when you file a claim.
NFIP accrued $11 Billion in flood losses when Hurricane Harvey hit Houston in 2017. Flood zone maps were so wildly inaccurate that they missed 75% of the damaged areas. They would statistically be more accurate if they flipped a coin.You can challenge the NFIP by paying a whopping $500 to have a leveling assessment if you believe your home is not in the proper flood zone. The results can affect your premium so drastically with the NFIP that it is almost universally recommended. United Flood Insurance does not require you to pay a $500 leveling assessment to obtain a fair and affordable quote. We use satellite imaging to provide the most accurate assessments, free of charge.
Due to claims, fees, and mismanagement, the National Flood Insurance Program reported $25.5 Billion Dollars of debt for the 2018 fiscal year. Yikes, how much of that debt is passed off to your flood insurance premium? United Flood Insurance does not have to pay other companies criminal fees to sell policies and process claims, nor have we accrued billions of dollars of debt due to decades of mismanagement. This allows us to offer better coverage and better service for a greatly reduced price.
Heavy rains and hurricanes, the two primary contributors to flooding, have steadily grown in intensity since the NFIP was implemented. The United States Environmental Protection Agency reported that “Heavy downpours have increased in frequency and intensity worldwide in the last 50 years.” Hurricanes have steadily grown more intense each decade. The NFIP writes 90% of Flood insurance in the US and gets financially crushed every time there is a natural disaster that experiences a flood. United Flood Insurance spreads their risk in accordance with the leading actuaries in the Flood Insurance industry. So, when disaster strikes on the other side of the country, rest assured your premium will not go up to help foot the bill.
Repeating Flood Zones
1% of properties in repeating flood zones account for 25% of the NFIP claims. One Florida home worth $55k flooded 40 times, and the NFIP has paid out over $400K to cover the flood claims. This has a negative impact on every policy covered by the NFIP. If you’re insured through the NFIP, your premium is artificially inflated to cover these properties. United Flood Insurance treats each property separately, and unlike the NFIP, we will not increase YOUR premium when that Florida home in the repeating flood zone files a claim for the 41st time.
Why United Flood?
As an independent provider of flood insurance, United Flood Insurance is equipped to provide superior pricing, product knowledge, and customer service. With expertise surrounding a single product focus – flood insurance – our team has a depth of knowledge that’s difficult to find elsewhere in the industry. Plus, when you choose us, you’ll receive 30-70% savings! As if this isn’t enough, we strive to provide the best client experience possible, offering prompt quotes and quick response times – United Flood Insurance is an insurance agency you can rely on for years to come.