Importance of Flood Insurance during Hurricane Season

Importance of Flood Insurance during Hurricane Season


Hurricane season officially begun June 1st and will continue until November 30. London Underwriters' goal is to prepare agents for the impending impact this storm season will have on insureds. The importance of flood insurance increases as the storms become more prevalent.  


This year is predicted to have more hurricanes than average. All storms, not just category 3 or higher, bring wind damage, flooding, and other perils that make insureds feel uneasy about their insurance coverage. Most customers are unaware of the importance of flood insurance until after a storm occurs.


Due to various myths regarding flood insurance, most people do not have flood coverage. The majority of insureds believe that flooding is protected under a homeowner's policy. However, it is not. Insureds need a separate flood policy to cover flood damage. 


Most people believe if a home is not in a flood zone or flood insurance is not required, it is not needed. Other customers believe that FEMA will intervene after a storm event. However both of these common myths are incorrect. 


Homes outside flood zones can still be susceptible to flood damage due to a storm.  Over 25% of flood claims are outside flood zones. In addition, FEMA does not intervene unless a storm is deemed a federal disaster. Hurricanes are deemed federal disasters less than 50% of the time. In the event that a hurricane is a federal disaster, then FEMA usually offers low-interest disaster loans that be must be repaid. 


In the event of a pending storm, insurance carriers may issue binding moratoriums that temporarily shut down new business. Agents should fully prepare insureds that customers will not be able to get flood coverage in the event of a binding moratorium. 


London Underwriters alert their appointed agents of binding moratoriums through the website, emails, or social media. 


London Underwriters offer both Residential and Commercial Flood programs through several markets. If interested, please email marketing@londonuw.com or visit the website for more information. If you are an agency interested in getting appointed, please fill out the Appointment Application on our website or email marketing@londonuw.com. 





    • Related Articles

    • Hurricane Restoration Services

      Hurricane season is approaching! In South Florida, hurricane season officially begins on June 1st and continues into late November. Agents can help their clients by providing coverage, but can also help with restoration services for their customers ...
    • Binding Moratorium on Next Insurance

      Next Insurance has announced that they have suspended new business writings for our Inland Marine product, as well as Commercial Auto (due the physical damage part of the coverage), for the states of AL, FL, LA, MS and TX.   Inland Marine and ...
    • London Underwriters Issues Binding Moratorium - Tropical Storm Fay

      Binding Moratorium - Tropical Storm Fay Effective July 10th, 2020 at 02:00 p.m. EST, London Underwriters will be issuing a New Business Binding Moratorium for all policies requiring windstorm coverage in the States of New Jersey, Rhode Island, ...
    • Binding Moratorium Lift: East Coast

      Binding Moratorium Lifted - East Coast Issued On: August 5th, 2020 Effective Date: 11:30 a.m. EST Territory Lifted: Georgia, South Carolina, North Carolina, Virginia, Maryland, Delaware, New Jersey, New York, Connecticut, Massachusetts, New ...
    • Binding Moratorium - Tropical Cyclone Three

      Issued On: Friday, June 18th, 2021 Effective Date: 11:00 a.m. EST  Territory Impacted: Louisiana, Mississippi, Alabama and Florida Panhandle Counties (Escambia, Santa Rosa, Okaloosa, Walton, Holmes, Washington, Bay, Jackson, Calhoun, Gulf, Liberty, ...