Companies that offer private flood insurance are writing the insurance on "their paper"—outside of NFIP's Write Your Own program. While private polices may provide relief to some homeowners, they are not without risks.
As the number of private insurance companies writing flood insurance increases, so, too, do the questions about staying with the NFIP or buying a policy from a private insurer.
The ink was hardly dry on the President's signature of The Biggert Waters Flood Insurance Reform Act of 2012 (BW12) when a flurry of private companies started to announce that they suddenly had an appetite for private flood insurance.
The use of private flood insurance policies for risks in the Special Flood Hazard Area (A and V zones) has increased substantially over the past year. This article reviews some of the potential risks of writing private flood insurance.
This review of the Flood Insurance Agency contract exclusively focuses on major issues of concern to insurance agencies and does not address general contract issues or provisions of the contract that contain boilerplate language.