Offer Flood Insurance
Water damage on property forms is covered in very limited circumstances. You should offer flood to anyone who has property exposures.
Flooding can happen to anyone at any time. Some areas are certainly more prone to flooding, but many natural disasters that occur world wide can lead to flood damage. Are your clients covered if a flood happens?
Most standardized property policies do not cover flooding. Water damage is excluded in most forms, which surprises many clients. As agents, we have the power and responsibility to educate our consumers on their protection needs.
Offering a flood quote should be a standard practice. Many states, Maine included, now allow private flood insurers to provide coverage. This means that you have an additional resource outside of the National Flood Insurance Program. But, it also means, you have to make sure you know how all those flood policies define and cover flood.
Generaly a flood means that it is a temporary and general condition - so not the norm and not just you. Flood water can be ground water, tidal water or a rapid accumulation. In Maine, we frequently see flooding as the snow and ice starts to melt.
When you are selling and servicing flood insurance pay careful attention to certain property that may not be covered depending on the type of property it is or where it is located (such as a basement or outside). In addition the policy may have a separate deductible that applies to buildings and property, so not just one deductible per occurrence.
Also, keep in mind there may be no coverage for indirect damages such as renting a hotel room while your property is being repaired.
All NFIP and at least some private carriers' flood policies do come with a 30-day waiting period. This is to avoid adverse selection. The insured can certainly come in today if there's a flood predicted or a flood already happening and purchase a flood policy, but the waiting period means the policy does not start until 30 days after they have signed an application and made payment. The only time the waiting period is waived is when needed for an FDIC backed loan transaction.
And one last tip in closing, Maine requires any agent who wants to sell or service NFIP flood policies to attend an approved FEMA flood course.