Tokio Marine Highland

While many of us are currently spending unprecedented amounts of time indoors, spring is still quickly approaching. The change in seasons brings warmer weather and longer days, which also presents the threat of heavy precipitation, snow melt and risk of flooding.

Forecasters from the National Oceanic and Atmospheric Administration (NOAA) are predicting widespread flooding this spring, even if it is not expected to be as severe as the 2019 season. According to NOAA, above-average rainfall is anticipated in the central and eastern U.S., and the National Weather Service’s outlook warns that the risk of flooding could potentially affect 23 states and 128 million citizens.

Are Your Customers Protected?

When working with your customers, it is important to consider the following:

• One out of every four of your customers will likely experience a flood event. In areas of moderate- to high-risk, there is a 26 percent chance of experiencing a flood over the term of a 30-year mortgage.
• More than 20 percent of flood insurance claims occur in moderate- to low-risk zones where coverage is not lender-required, according to the Federal Emergency Management Agency (FEMA).
• Flood damage is the nation’s most common and costliest natural disaster, yet less than 20 percent of homeowners are protected.
• Only one inch of water in a building can cost tens of thousands of dollars in damage. Even minimal flood insurance coverage can protect your clients from directly incurring the cost of such a devastating loss.

Wider Range of Options, Better Coverages with Private Flood Insurance

There has never been a better time to talk with your customers about the risk of flooding and that private flood insurance solutions offer higher limits, broader coverages and more stable and competitive rates than what is available from the National Flood Insurance Program (NFIP).

For more than 25 years, Tokio Marine Highland has been a trusted source for private flood insurance, so you can be confident in our knowledge, underwriting expertise and longevity when presenting your customers with our innovative flood solutions. To learn more about Tokio Marine Highland’s comprehensive flood offerings or to have us quote your potential target risks, visit our website or contact us at PrivateFloodSolution@tmhighland.com.

The National Flood Insurance Program (NFIP) is set to increase rates once again on April 1, per Federal Emergency Management Agency (FEMA) bulletin W-19014 published last October. Some of the upcoming increases to note include:

Pre-FIRM Subsidized Rates:

• Primary Residences – +7.5%
• Non-Primary Residences – +23.1%
• Non-Residential Businesses – +24.2%

Post-FIRM A Zones – Up to a 5.1% increase
Preferred Risk Policies (PRPs) – +12.5%
Newly-Mapped Policies – +15%
Reserve Fund Assessment Fee – +15-18%

With an average increase in rates of 9.9% taking effect on April 1, and another rate hike planned for January 1, 2021, it has never been a better time to explore the benefits of private flood insurance and review Tokio Marine Highland’s rate-stable solutions with your valued customers. Our private flood programs offer a wider range of options than provided under the NFIP, including competitive rates, higher limits and broader coverages. It’s why Tokio Marine Highland has been at the forefront of private flood insurance for more than 25 years.

To have Tokio Marine Highland review your upcoming NFIP renewals for competitive quotes, just send us a current flood Dec Page and our underwriters will do the rest! For additional questions about Tokio Marine Highland’s programs, contact us today at PrivateFloodSolution@tmhighland.com or visit our website to learn more about our comprehensive flood offerings.

Congressional leaders once again narrowly prevented the National Flood Insurance Program (NFIP) from lapsing, passing legislation to extend the Federal Emergency Management Agency (FEMA) program until November 21. The move was part of a continuing resolution signed by President Trump to extend current funding levels and prevent a federal government shutdown.

The short-term reauthorization of the NFIP, which provides coverage for more than 5 million homeowners, represents yet another temporary extension for the program without meaningful reforms. Since the NFIP’s last long-term authorization expired in September 2017, the program has been extended 12 times. In addition, it has lapsed twice since 2016.

While many lawmakers have been vocal about the need for wholesale reforms, questions remain as to whether Congress will have enough time to make the NFIP a priority in the final quarter of 2019. Any potential lapse in the program poses significant concerns for both lenders and insurance providers, as they strive to ensure that their customers have coverage, whether mandated by law or a preference to protect their assets.

Contact us today to learn why private flood insurance may be a better option for you and your clients. Email us at PrivateFloodSolution@tmhighland.com or visit our website to learn more about Tokio Marine Highland’s comprehensive flood offerings.

Spring is right around the corner. While many areas of the country welcome the end of snow season and cold temperatures, it is important for your clients to be aware of the increased risks of flooding due to warmer weather, melting snow and heavy rains.

Rapid snowmelt and heavy rainfall from the recent bomb cyclone have led to historic and catastrophic flooding across the Plains and Midwest. According to the National Weather Service, more than 40 communities in Nebraska, Iowa, Wisconsin, Minnesota, South Dakota and Illinois are experiencing record high river levels that have devastated towns and forced thousands to evacuate their homes.

While the elevated risk of flooding in spring isn’t new, some areas of the country may be experiencing the most significant flooding on record, and according to weather experts, the trend is only likely to continue and grow more severe. Extreme weather events are increasing in frequency and intensity, and studies have found that over the past two decades, heavy precipitation events have been increasingly above average, particularly in the Midwest, Great Plains and Northeast.

Your Customers Are Likely at Risk Without the Necessary Coverage

When working with your customers, it is important to consider the following:

One out of every four of your customers will likely experience a flood event.

In areas of moderate to high risk, there is a 26 percent chance of experiencing a flood over the term of a 30-year mortgage. According to the Federal Emergency Management Agency (FEMA), more than 20 percent of flood insurance claims occur in moderate-to-low-risk zones.

Flood damage is costly, yet less than 20 percent of homeowners are protected.

Flood damage is not traditionally covered under a homeowners insurance policy, and the results can be devastating. Only one inch of water in a home can cost more than $25,000 in damage. Yet only an estimated one out of every six households in the U.S. have flood insurance. Do you know if your customers are protected?

The Right Time for Private Flood Insurance

It has never been a better time to talk to your customers about the risk of spring flooding and the private flood insurance solutions that are available to help protect their valuable property. For more than 25 years, Tokio Marine Highland has been at the forefront of private flood insurance. That’s why you can be confident in presenting your customers with our specialized products and innovative solutions to protect against devastating flood loss.

The private flood market offers a wider range of options, competitive rates and better coverages than provided under the National Flood Insurance Program. Contact us today to learn more. We can quote your potential target risks and answer any questions you and your customers may have about options.

Email us at PrivateFloodSolution@tmhighland.com or visit our website to learn more about our comprehensive flood offerings.

As the clock ticked down on Friday, December 21, Congressional leaders once again narrowly kept the National Flood Insurance Program (NFIP) afloat, providing a short-term reauthorization of the program until May 31, 2019. The move came only hours before the start of a partial federal government shutdown, which led the Federal Emergency Management Agency (FEMA) to announce it was halting sales of new and renewing policies due to an appropriations lapse. FEMA, which administers the program that provides coverage for more than 5 million homeowners, abruptly reversed the decision a week later after industry groups and lawmakers expressed concern over the disruption to the program.

For those who have closely watched the debate over the fate of program, the 11th-hour extension came as no surprise. In fact, since the NFIP’s last long-term authorization expired in September 2017, the program has been extended 10 times. The program has also experienced two brief lapses since 2016.

While many lawmakers have been vocal about the need for wholesale reforms, questions remain as to whether Congress will make long-term reauthorization a priority in 2019. Any potential lapse in the program poses significant concerns for both lenders and insurance providers, as they strive to ensure that their customers have coverage, whether mandated by law or a preference to protect their assets.

With the continued uncertainty surrounding the NFIP, and the onset of winter and its impending storms, it has never been a better time to explore the benefits of private flood insurance and review the options with your valued customers. Here are three reasons why private flood insurance will provide your customers with the peace of mind they need, knowing their assets are being protected every step of the way.

1. Congressional approval and action.

The private market is not dependent on Congress to renew authority and ensure stability. Your customers can take comfort in the certainty that comes with private flood insurance, knowing that they are able to get a policy when they need it and count on the coverage it provides.

2. More options and better coverages.

The private flood market offers your customers with a wider range of options than provided under the NFIP, including competitive rates, higher limits and broader coverages. Private coverage is also not subject to NFIP surcharges and fees.

3. Tailored solutions backed by industry expertise and superior service.

For more than 25 years, Tokio Marine Highland has been at the forefront of private flood insurance. It’s why you can be confident in presenting your customers with our specialized products and innovative solutions to protect against devastating flood loss. And if there is a need to file a claim, Tokio Marine Highland’s wholly owned and operated claims administrator ensures claims are handled promptly, professionally and accurately.

Although transitioning NFIP coverage to the private market may not be a fit for every policyholder, Tokio Marine Highland can quote your potential target risks and answer any questions you and your customers may have about options.

Interested in learning more? Email us at PrivateFloodSolution@tmhighland.com or visit our website to learn more about our comprehensive flood offerings.