All it takes is a few inches of water to cause devastating financial loss. Because flooding is not covered by standard homeowners insurance, Congress created the National Flood Insurance Program (NFIP) in 1968 to help provide a means for property owners to protect themselves from financial loss due to flooding. According to the NFIP, over the past 10 years, the average flood claim has totaled more than $33,000. Homes and businesses that are located in high-risk flood areas and have mortgages from federally regulated or insured lenders are required to have flood insurance. 

Floods are the most common natural disaster in the United States. Contrary to popular belief, floods are not limited to coastal areas; they happen almost anywhere. Nearly one-quarter of all the NFIP’s paid insurance claims come from low to moderate flood-risk areas, according to the NFIP Web site.

Flood insurance can be purchased only through an insurance agent; therefore, insurance professionals should have technical and practical knowledge and skills so they can confidently and accurately handle all aspects of providing flood insurance coverage. An excellent resource is the Flood Insurance course offered by CEU.com. This course begins with an introduction to the Federal Emergency Management Agency (FEMA) and the NFIP. It also looks at the broad concept of flood insurance and reviews the general rules that apply to the NFIP by examining various products that are available and basic principles that apply to this type of coverage. Topics include the process of completing an application for flood insurance, how the cost of the insurance is determined, and how to find out when a preferred risk policy is available or when a provisional rating is appropriate. 

The course reviews coverage for condominiums and special certification requirements. The flood insurance policy is examined in more detail by exploring how some standard insurance practices-such as endorsements, renewals, cancellations, and claims-may be handled differently for flood policies. Finally, the course examines current FEMA manual revisions to ensure that participants are up to date on the latest changes. A general review of all course material concludes the Flood Insurance course.

Because the NFIP is part of FEMA, insurance professionals involved in writing, selling, or providing flood coverage must comply with Department of Homeland Security and FEMA requirements. The NFIP has created guidelines and tools to assist insurers and agents in providing the public with broader access to flood insurance.

To register for the Flood Insurance course, visit www.ceu.com.