Frequently Asked Questions
What are the eligibility requirements for the Private Market Flood insurance program?
TFIA's Private Market Flood policies are only offered in: AK, AL, AR, AZ, CA, CO, CT, DE, FL (Coverage NOT available in Monroe county), GA, HI, IA, ID, IL, IN, KS, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY.
Properties eligible for coverage are one to four unit residential structures, other residential structures and non-residential structures.
Private Market Flood coverage is not available for properties located in CBRA areas, non-participating FEMA communities, mobile homes, or condominium units.
Other properties not eligible for coverage include: properties that have experienced more than one flood loss within the past ten years, properties with unrepaired flood damage, any property that has been designated by FEMA as a Severe Repetitive Loss property, and properties that have been designated by a duly constituted State or local authority to be in violation of State or local floodplain management regulations (Section 1316).
Ineligible properties can be considered on a case by case basis through a Submit For Rate application at https://www.privatemarketflood.com/submit-for-rate.
How does the Private Market Flood policy differ from the NFIP/FEMA policy?
The Private Market Flood insurance policy includes the same coverage as the NFIP policy. Underwriters agree that in no event would a loss be denied under the Private Market Flood policy that would have been settled under the FEMA National Flood Insurance program Standard Flood Insurance policy Dwelling form. In fact, the two programs even utilize the same claims adjusters.
When should I submit an application?
You should only submit an application for flood insurance when you are ready to purchase the policy. The online estimate calculator will provide you with a fully accurate indication of the premium. If the indicated premium is acceptable, only then will you complete the online application.
How can I cancel a Private Market Flood policy?
Similarly to an NFIP policy, the Private Market Flood policy can only be canceled for twenty-one distinct reasons. A full list reasons and their procedures can be found here. Multi-year policies should refer to Section C of the cancellation guidelines for special multi-year policy cancellation procedures and provisions.
Does Private Market Flood write insurance in low-risk flood zones like zone B, C or X?
Yes! You can receive a premium estimate for properties in a B, C, or X flood zone using the online estimate calculator. These rates do not apply if the flood policy is required by your lender.
What are the coverage limits of a Private Market Flood policy?
The coverage limits for a Private Market Flood insurance policy are as follows:
· $500,000 of building coverage for a residential dwelling.
· $250,000 of contents coverage for a residential dwelling.
· $500,000 of building coverage for a non-residential or other residential building
· $500,000 of contents coverage for a non-residential or other residential building
What is excess flood insurance?
An excess flood insurance policy allows a policyholder to cover a building's value when it exceeds the maximum available limits ($250,000) of the NFIP or Private Market Flood policy. Excess flood insurance can be purchased whether the primary policy is a Private Market Flood policy or a NFIP flood policy. Excess coverage can be applied for at https://privatemarketflood.com/calculate-your-own-premium.
What constitutes a prior loss?
A prior loss is any loss or damage to the structure due to the peril of flood regardless if there was insurance on the property or not.
What is the waiting period for a private flood insurance policy to become effective?
It depends. For a loan closing, there is a 0 day wait, provided that the insurance is required as part of the loan by a federally regulated mortgage company or licensed mortgage broker. Payments from any other source must be received no later than 10 days following the date of application, and would require evidence of closing and the lender's purchase requirement in the event of a loss within the first 30 days of the Policy.
There is also a 0 day wait if the applicant is looking to replace their current NFIP policy at renewal. In this instance, the policy will become effective the date of existing NFIP policy expiration so long as a signed application and the full premium payment are received within 30 days following the existing NFIP policy's expiration date. (Premiums received after the NFIP policy's expiration date require a signed No Known Loss statement).
If the policy is replacing an expiring private insurance policy, the signed application and premium must be received prior to the expiration date to hold the effective date. Premiums received after the private policy expiration date would result in a 14 day waiting period. This waiting period may be waived if the existing policy has a 30 day grace period and the premium is paid to TFIA by the federally backed mortgage company requiring the flood insurance. Premium would be due from the mortgage company prior to the end of the current policy’s 30 day grace period and a no known loss form signed in order to hold the expiring policy’s effective date.
For any other reason for insurance, the wait is 14 days from the date payment is received.
Are there any additional taxes and/or fees?
The taxes and fees for the policyholder's state are automatically calculated by premium estimate calculator and can be found as the final line item on the premium breakdown.
Can my client add Rate-Lock to their existing Private Market Flood policy?
Rate-Lock can be selected at the renewal of an existing Private Market Flood policy, but cannot be purchased mid-term.
Can all insurance agents and brokers sell Rate-Lock policies?
Only insurance agents and brokers registered with The Flood Insurance Agency can sell Rate-Lock policies.
How long is the policy period of a private flood policy?
Policyholders have the option of selecting either a 1 year (12 month), 2 year (24 month), or 3 year (36 month) policy term. All policies, regardless of term, must be paid in full before the policy is issued. Selecting a policy term of 2 or 3 years allows policyholders to lock in their current rate for that period of time.
For specific multi-year policy cancellation procedures and provisions, please see Section C. of our cancellation guidelines.
What forms of payment do you accept?
Electronic checks.