Understanding the Unique Facets of Flood Insurance: Key Underwriting Questions

Flood insurance is, unusual. A flood policy essentially covers one peril but is surrounded by many unusual facts and facets that make flood coverage unlike any other. Agents must understand the uniqueness of flood to more effectively present it to clients. This series on flood insurance is divided into seven parts; following is part 7. Links to each part in the series are provided at the end of the articles.

By: Chris Boggs
August 23, 2021

When placing flood coverage, there is certain key information that is required. The following may not be all the information needed to underwrite, rate and place a specific flood policy, but it represents most of the needed information.

Is the structure located in an NFIP-participating community?
Is the structure Pre-FIRM or Post-FIRM?
In what flood zone is the structure located?
Do flood zones change near the structure (i.e., from “X” to “A”)?
Is the dwelling located in a Special Flood Hazard Area?
Does the structure have a “basement” as defined in the policy?
If located in a Zone “V”: Is the structure elevated on piers, posts, pilings, etc.?
If located in a Zone “A”: Do solid foundation perimeter walls have proper engineered openings (1 sq. inch per 1 sq. foot of enclosed space)?
Is the structure located in a CBRA zone or OPA?
When was the last elevation certificate completed?
What is the height above Base Flood Elevation (BFE)?
Have there been any additions to the structure since the last elevation certificate was completed?
When was the last photo provided?
Have there been any improvements or betterments to the structure (external additions, internal upgrades, etc.)? If “yes,” what were the improvements and what was the cost of improvements?
Has the structure been damaged by any cause of loss (fire, wind, flood, etc.)?
Has the insured previously carried flood coverage on the structure? When?
Is coverage needed for a loan closing?
Has the community been recently remapped?

Flood Series

This is one of a series of flood articles discussing and detailing the unique facets of the NFIP flood program. To continue researching the unique facets of the NFIP, visit any or all the links provided:

Read the entire series here.

Resources

First Published: August 23, 2021

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