Is your client’s home replacement value greater than $250,000?
The NFIP’s maximum limit for non-condominium residential buildings is $250,000. Since this does not cover the average home price in the U.S., it is likely that your client’s home is valued above this limit. If this is the case, your customer should opt for an NCIP private flood insurance policy.
Does your client want personal property coverage for their contents?
The NFIP only offers Actual Cash Value (ACV) coverage on your client’s possessions. In addition, some items that are part of dwelling coverage, like carpeting, are also adjusted using ACV. NCIP offers the option to insure you clients’ possessions at Replacement Cost Value (RCV).
Does your client want ALE coverage (Temporary Living Expense)?
If your client’s home becomes uninhabitable, they will likely incur additional living expenses while waiting for their home to be repaired. Adding this coverage could help them avoid living in a shelter during a large flooding event. Additional living expenses is an optional coverage with the NCIP program, but it is not covered by NFIP flood insurance.
Does your client’s home have a basement?
NFIP policies do not cover contents or personal property in a basement. In addition, NFIP policies do not cover permanently installed flooring or carpeting, finished walls, bathroom fixtures, or other built-ins in a basement. NCIP offers basement coverage for flooring and finished walls, along with the option of basement contents coverage.
Does your client want multiple buildings under one policy?
Things like detached garages can be covered under one policy with NCIP private flood insurance. With the NFIP, you must acquire a separate policy if you want separate coverage for every structure. This often creates unnecessary expense for the consumer.
Know your client’s needs.
For some properties, an NFIP policy may be adequate. However, if your client wants better coverage, the NCIP program offers much broader coverage options. In addition to more coverage options, NCIP policies are less expense 75% of the time. If you want to save your client money, and provide them with broader coverage than the NFIP, offer them an NCIP quote at CATcoverage.com.
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