How FloodPrice Helps Realtors with Flood Insurance

As a real estate professional, you know how critical it is to keep a transaction on track, but flood insurance can quickly become an unexpected roadblock that delays closing.

Flooding is the most common and costly natural disaster in the U.S. If a property falls within a Special Flood Hazard Area (SFHA), lenders are federally mandated to verify that proper flood insurance is in place before funding the loan. This requirement often catches buyers and realtors off guard, and delays can occur if your client waits too long to secure coverage or runs into issues with documentation.

As the agent, your clients may look to you for guidance, so it’s important to flag

this potential hurdle early, especially when working with properties in or near high-risk flood zones. Doing so helps you manage expectations, prevent last-minute surprises, and keep your deals moving forward smoothly.

Besides setting expectations, clear communication about flood risks is also a matter of legal responsibility. Flooding is considered a material fact in a real estate transaction, and failure to disclose flood damage can result in liability. Brokers and agents generally owe buyers a duty to disclose adverse material features, conditions, or aspects of property of which they have actual knowledge. The key for agents is to stay proactive: confirm flood zone status early in the transaction, encourage buyers to initiate coverage right away, and maintain open communication with the lender.

NFIP vs. Private Flood Insurance: What’s the Difference?

Flood insurance premiums can significantly impact a buyer’s debt-to-income ratio, causing loan terms to be revisited, so finding cheap flood insurance that is fast and easy is critical to keeping the deal on track.

One common option is the National Flood Insurance Program (NFIP), managed by FEMA, which provides federally backed flood insurance to property owners. While your client must live in a participating community to be eligible, they don’t need to be in a FEMA-designated flood zone to purchase coverage, making it a great option for any property.

Private flood insurance is provided by private insurers rather than the federal government. While these policies aren’t backed by the federal government, they are underwritten by carriers rated Excellent or better by AM Best. Unlike the NFIP, these long-standing private insurers have demonstrated strong financial stability over time, operating independently without reliance on federal funding. These private flood insurance companies typically offer several advantages over the NFIP, including lower premiums and more coverage options. Benefits such as higher coverage limits, protection for basement contents, and reimbursement for temporary living expenses if your client is displaced are just a few examples.

The good news…FloodPrice.com offers both! Buyers can compare policies through the NFIP and top-rated private carriers to find the best fit.

Let's Compare Residential Policies	Private Residential Policy	NFIP Residential Policy
Compliant with State Insurance Laws	Yes	No
Maximum Building Coverage Available	$5,000,000	$250,000
Maximum Content Coverage Available	$500,000	$100,000
Additional Coverage Options Available**	Additional Living Expenses, Carports & Decks	None
Basement Contents Coverage Available*	Yes	No
Waiting Period for Policy Inception (waiting period waived for loan closing)	7-15 Days	30 Days

*Depending on the carrier. See policy for details.

**Limited Coverage may be available for detached garages.

Partner with FloodPrice

Collaborating with FloodPrice gives real estate professionals a trusted partner in simplifying flood insurance for their clients. Our team understands the unique needs of homebuyers and provides access to both NFIP and private flood insurance options—all in one place.

Here’s how we help you deliver more value:

• Clear side-by-side comparisons of NFIP and private flood insurance quotes online!

• Flexible private coverage options, including higher policy limits, basement contents, and Additional Living Expenses (ALE).

• Free Flood Zone Lookup Tool to check your client’s flood zone.

• Fast online quoting process so clients can secure coverage quickly, helping to avoid delays at closing.

• Dedicated support to assist you and your clients every step of the way.

  
  

By partnering with FloodPrice, your clients get cost-saving, convenient options, portraying you as a trusted adviser throughout the entire buying process.

Ready to Enhance Your Client Offerings?

Need flood insurance? Get a quote online in minutes. Our online quote tool shows you rates from the NFIP and trusted private insurers side by side, making it easy to find great coverage at the right price.

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