In a recent article featured in the Big i Independent Agent online magazine, excellent advice was given for insurance agents on how to explain flood insurance policy coverage options to homeowners. Here is a summary of the article: 

In the wake of devastating flooding incidents in California, Vermont, and other parts of the U.S. in 2023, the significance of flood insurance has become increasingly apparent. However, insurance agents face challenges in promoting flood insurance to clients, including economic uncertainties and rising expenses. Nevertheless, it is vital for insurance agents to educate their clients about the importance of flood coverage. Cassie Masone, Vice President of Flood Operations at Selective Insurance, underscores the urgency of this task, emphasizing that flood insurance should remain a priority for consumers. This is especially true here in Massachusetts where residents of Cape Cod, the South Shore and South Coast MA are facing another active hurricane season. Noreaster’s and blizzards also pose a similar threat through the fall and winter seasons to all residents of MA.

To effectively persuade clients to invest in flood insurance and showcase their expertise, insurance agents can employ three key strategies:

1. **Integrate Flood Insurance Discussions:** Floods are the most common and financially burdensome perils for property owners, as stated by FEMA. However, many clients are unaware of the necessity of flood insurance and the process to obtain it. Insurance agents should make discussing flood insurance a routine part of every client conversation, similar to addressing other ancillary coverages. Clients often do not realize they can purchase flood insurance outside special flood hazard areas, obtain more coverage than the National Flood Insurance Program (NFIP) offers, or explore alternatives without waiting periods or elevation certificates. As extreme weather events become more frequent and severe, clients rely on advisors to identify risks to their valuable assets.

2. **Comprehend Flood Coverage Options:** It is essential for agents to understand the evolving landscape of flood insurance. With Risk Rating 2.0, NFIP pricing has undergone changes, necessitating agents to grasp the new rating guidelines. Agents should seek support from Write-Your-Own carriers to ensure they consider all the new rating elements for accurate pricing. Additionally, agents must be well-versed in private and excess flood insurance options to provide comprehensive coverage to their clients, including additional living expense coverage. For high-net-worth clients with high value homes, agents should be knowledgeable about the limitations of NFIP and available private market policies, especially for unique structures or valuable assets exceeding primary flood coverage limits.

3. **Highlight Technological Advancements:** Agents should emphasize the role of technology in enhancing the insurance experience. Technologies like artificial intelligence (AI) and 3D property data are increasingly crucial in underwriting. Drones, for instance, provide aerial images of risk areas, aiding carriers and agents in risk assessment and management. Technology and AI enable insurers to create precise catastrophe and flood models, develop new products, increase coverage limits, and predict risks proactively. Streamlining the submission-to-quote process with AI enhances speed and efficiency in underwriting, enabling agents to present pre-qualified submission answers to underwriters.

Why New England Homeowners May Need Flood Insurance
In conclusion, insurance agents have a vital role in advocating for flood insurance coverage here in the New England region, particularly in a changing climate with more frequent extreme weather events. By integrating flood discussions, understanding coverage options, and highlighting technological advancements, agents can effectively educate their clients and safeguard their properties against the financial devastation of flooding. In doing so, they foster trust and long-term relationships while ensuring clients are adequately protected in times of a natural disaster.