Why is FL Flood Insurance a Separate Policy?

If you ask anyone at a Florida insurance agency to tell you about home insurance, they would probably mention that it does not cover floods.

Why might this be something they mention? Because many home insurance policy holders still think that floods are one of the perils covered under their home insurance.

Here at Dennis Insurance Agency, we never like to get that phone call. Explaining that the flood they have suffered is not covered by their insurance is heartbreaking to insurance agents everywhere.

But why is FL flood insurance not covered under your home insurance?

In 1968, congress created the National Flood Insurance Program, or NFIP. This was because the repair and replacement damages for floods were getting out of control.

The creation of the NFIP was supposed to help keep flood insurance expenses and expenditures in their own separate account, and make home insurance more affordable.

Because home insurance no longer had to cover the damages, home insurance premiums did indeed decrease. Now, FL flood insurance is its own policy, and Florida residents can decide if they want it separately from their home insurance.