From the Front Lines: Flood

How did you get started at your agency?

I started when I was hired to merge two existing agents in Manteo, North Carolina. I had lived in Chapel Hill where I graduated, so I moved my family to Manteo and was working for an existing agency. Then in 1993 I started the Willey Agency with my wife Linda, and it was just three of us—a startup agency. I think it’s one of those things people say you don’t want to do, but we did. It worked and I’ve loved it all the time after that.

Why flood insurance?

When you live on an island and you’re surrounded by water, you need to know something about flooding. I started in Manteo, which is on Roanoke Island. Then we moved the Willey Agency to Nags Head, and I am now three blocks from the ocean. On a stormy day, I can hear the surf. You need to know something about flood when you are that close to the water. Everybody wants to be close to the water. Everybody wants waterfront property. Everybody likes the water when it’s a beautiful day like today. But when the water gets angry, you better have flood insurance.

Biggest flood changes over the years?

I’ve been in the business long enough to have seen a lot of changes. One of the most important things was after Hurricane Floyd in 1999. That was the big flood for North Carolina—66 of its 100 counties were declared disaster areas and a quarter of the state’s land area was underwater. North Carolina’s Commissioner of Insurance at that time, Jim Long, required that every licensed agent get flood insurance continuing education for three hours over a three-year period. This North Carolina requirement predated the federal requirement, and that was a very positive thing for the agent community.

One of the good things that came out of Hurricane Isabel was the Flood Insurance Claims Handbook. This little book comes with 13 pages of what you need to know when you have a flood claim. For most consumers, they’re not going to read their policy. But they probably can read a 13-page handbook.

Future of flood insurance?

We need to get ahead of the renewal process for the NFIP, which is currently set to expire Sept. 30, 2017. I think the people who work on Capitol Hill need to make sure we don’t have what happened last time—the last time the NFIP was up for reauthorization, it took 17 short-term extensions, four lapses, and nearly four years before the program was reauthorized in July 2012. That is just astounding. I hope our team on Capitol Hill can make sure we get this renewal reauthorization done on time, and I think they can do it.

I did see the “Flood Insurance Market Parity and Modernization Act” is being considered in Congress right now, sponsored by two guys from Florida. I’d like that to take some of the pressure off the NFIP, except we’ve got a known product with the NFIP. That’s good, but when you go to private policies, I’m concerned consumers and agents will not know that all of these private policies are different. When you’re dealing with excess & surplus lines you have to read and make sure you know the coverage you’re looking for. You have to know the difference.

What do you say to a first-time client looking at flood coverage?

The consumer has probably seen a flood map and the bank making the loan probably said, “You need to consider flood insurance,” or “You must have this amount of flood insurance.” But the main thing I would say is that the line on the map that says that you’re in a C zone or an X zone is not going to stop the water. People say, “I’m in a low-hazard zone—I don’t need flood insurance.” That line is not going to pay for your sofa. When you’ve got water coming into your house, it doesn’t work that way. Everyone should consider flood insurance no matter what zone you’re in.

We recommend to the consumer that they read the policy, and if you don’t read the policy, please read the Flood Insurance Claims Handbook.

Advice for a fellow agent trying to break into the flood market?

Become a student of the industry. Study and be a scholar. Be a flood geek. Everybody has flood exposures in your agency. Very often the wealthiest people want to live beside the water. It’s a status symbol. You better know how to insure those people who want to be on the waterfront.

Favorite success story?

I remember a bookstore. And unfortunately, the bookstore was flooded. The owner said, “All these books are wet. I can’t sell them.” He threw them out in the street, and the dumpster was refilled. Then the adjuster got there and demanded proof of loss. The owner told him the books were gone, so the adjustor told the owner he couldn’t pay the claim.

I called the adjuster and the head of his office, who said, “Well, I think if we had the inventory that you last did, we can pay the claim on the basis of the inventory because we know that all these books were flooded. If you’ve got good inventory records, we’ll pay the claim.” The store owner called me back and said that saved his life. You never know what’s going to happen.