Flood Insurance

About Flood Insurance

Flood insurance became a federal priority when Congress passed the National Flood Insurance Act of 1968, creating the National Flood Insurance Program (NFIP) so households and businesses in participating communities could secure coverage even when private markets retreated; today the program oversees roughly 4.7 million policies nationwide.¹

Subsequent reforms such as the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 made coverage mandatory for mortgages in Special Flood Hazard Areas, embedded Increased Cost of Compliance benefits, and formalized incentives for communities that exceed FEMA's minimum floodplain standards.²

FEMA's Risk Rating 2.0 phased in between October 1, 2021, and April 1, 2023 to align premiums with each property's unique risk profile, and courts have allowed the overhaul to proceed even as some states challenge the methodology, so Rockland County clients now see rates that reflect building value, distance to water, and flood frequency.^3,4

Coverage Highlights

Drawing on FEMA guidance and our internal glossary, these provisions keep rising water from derailing your recovery.

• Building Coverage: NFIP Dwelling Form limits pay up to $250,000 for structural elements, foundations, and permanently installed equipment, which is why we document every mechanical before a storm.¹
• Contents Protection: Separate NFIP contents limits (capped at $100,000 on residential policies) reimburse clothing, furniture, and electronics that standard homeowners policies exclude once groundwater enters.²
• Increased Cost of Compliance: NFIP automatically includes up to $30,000 to elevate, floodproof, relocate, or demolish substantially damaged structures so rebuilt homes meet current floodplain rules.³
• Private & Excess Flood: When values exceed NFIP caps, we layer private flood and excess limits that can add millions in building or contents coverage and even extend loss of use benefits.⁴
• Parametric Supplements: For coastal or riverfront assets, parametric flood products trigger lump-sum payments when rainfall or water levels exceed agreed thresholds, giving you cash flow while traditional claims adjust.⁵
• Private Market Flexibility: Modern private market programs can insure Zones B, C, or X, waive the standard 30-day wait for lender-driven closings, and provide higher sublimits for specialty contents.⁶

Rising Costs

Risk Rating 2.0 now prices each NFIP policy with catastrophe-model inputs such as distance to water and replacement cost, and statutory rules still allow most residential rates to rise up to 18% per year until they reach full risk-based levels, which is why many moderate-risk properties are seeing step-change increases.¹²

Nationally, average NFIP premiums in 2025 range from roughly $865 in Florida to $1,133 in New York, yet only about 3.3% of U.S. households carry an NFIP policy and fewer than 4% have private flood insurance, so a smaller risk pool is absorbing larger catastrophe losses.³

The July 2023 Northeastern floods delivered $2.2 billion in damage and more than 10 inches of rain in parts of New York, and FEMA is still funding $2 million repairs to Woodbury's Earl Reservoir Dam, underscoring why Hudson Valley infrastructure now draws closer underwriting scrutiny (we infer from those repairs that carriers see higher severity potential along the Hudson corridor).^4,5

Cheaper Premiums

• Document elevation data: Elevation certificates, raised utilities, and engineered flood openings earn mitigation credits under Risk Rating 2.0; we coordinate surveyors and upload the certificates directly to the carrier.¹
• Join the Community Rating System: Municipal CRS scores translate into community-wide discounts of 5% to 45%, so we help local officials document outreach, drainage, and building-code upgrades that lower everyone's rates.²
• Consider higher deductibles: Pushing NFIP deductibles toward the $10,000 maximum can trim premiums by up to 40%, and we run cash-flow analyses to confirm the savings outweigh the extra retention.³
• Layer private or excess flood: Blending NFIP with private or excess programs can secure higher limits and sometimes lower base rates, especially for high-value homes needing loss-of- use benefits.⁴
• Add parametric triggers: Fixed-payout flood covers that respond to rainfall or tide gauges can offset higher deductibles and provide quick liquidity after a storm.⁵

What We Do

We collect elevation data, prior loss information, mechanical locations, and lender requirements up front, then quote so you can compare deductibles, waiting periods, and any special endorsements before you bind. Afterwards, we keep track of your renewal date and alert you to any potential loss of coverage due to underwriting changes.