The coverage may not be as broad as the coverage offered through NFIP.
Today, some well-known insurance companies operate under NFIP's Write Your Own program, including the Hartford and Travelers. NFIP implemented the Write Your Own program in 1983, which made it possible for private insurance companies to offer flood insurance using the rates and regulations set forth by the NFIP. The NFIP is offered by the Federal Emergency Management Administration (FEMA). To resolve the issue, the government stepped in and created a subsidized insurance option - the National Flood Insurance Program. Buyers, realtors, and lenders all suffered. As such, when private insurers stopped writing coverage for flooding, the real estate market was severely impacted. In order to obtain a mortgage for a home located in an area that's prone to flooding, flood insurance is mandatory. Flood damage can cost an insurance company a tremendous amount of money, and quite frankly, insurance companies that offered flood coverage didn't want to sustain those losses. This program was created in response to the increasing number of private flood insurers that stopped providing coverage to homeowners because of the massive losses they suffered when those they insured filed claims. The National Flood Insurance Program (NFIP) was established in 1968. Namely, many homeowners and businesses have been wondering if there are differences between Private Flood Insurance vs NFIP Coverage (FEMA)? So what are the differences are between the National Flood Insurance Program policy and the Private Market Flood insurance policy? About The National Flood Insurance Program (NFIP) The devastating flooding that occurred as a result of several significant hurricanes in 2018 has lead to a surge in the amount of inquiries about flood insurance. Private Flood Insurance vs NFIP Coverage (FEMA) What is the difference between Private Flood Insurance vs NFIP Coverage (FEMA)? Believe it or not, the Private Market Flood insurance policy has the exact same coverage as the the National Flood Insurance Program policy - but it is not available in all locations and has other limitations.