Are Your Clients Ready for El Niño?

Climate experts have warned residents along the West Coast to prepare for what could be the strongest El Niño on record. Years of drought and wildfires, coupled with predicted heavy rainfall caused by El Niño, could result in devastating flooding this winter.

Experts have already begun observing weather patterns similar to those of the 1997 El Niño, when California received more than 20 inches of rain that resulted in more than $550 million in damage. Heavy rains following years of drought can lead to flash floods or mudflows because the land cannot quickly absorb the water. While large volumes of water may put a dent in this historic drought, residents need to be prepared for a flood event this winter.

What does this mean for you and your clients? Since consumers typically face a 30-day waiting period before flood insurance takes effect, now is the time to talk to your clients about their increased flood risk and the importance of having flood insurance.

For clients with an existing flood insurance policy, be sure to review coverage to identify any potential gaps, such as contents coverage. If their policies are up for renewal, stress the importance of avoiding a coverage lapse.

For clients and prospects currently without a flood insurance policy, make sure they understand that they could be left paying for flood damage out of pocket, since most homeowners, renters and business policies typically exclude this peril. If they are located in a moderate- to low-risk flood area, talk to them about purchasing a Preferred Risk Policy—a lower-cost option that includes both building and contents coverage.

Due to the media buzz currently surrounding El Niño, you must prepare to answer any questions that your clients may ask about flood insurance. FloodSmart—the marketing and education campaign of the NFIP—offers many resources to help you talk to your clients about flood insurance. Visit the new Outreach Materials page, where you can find and print materials to share with your clients, and the Preparing for a Flood page to see what you can do now to ensure that your agency is prepared to handle an influx of claims following a flood event.

Be sure to register for the FloodSmart Agent Referral Program, where you can grow your business and receive free qualified leads. Only two hours of flood insurance training valid within the past two years is required. Need updated training? Take advantage of the NFIP’s free online flood courses.

Don’t let out of sight mean out of mind for your clients this winter. Be sure they have flood coverage to protect what matters.

FloodSmart is the official website of the NFIP.