PRODUCT: Private flood insurance for residential condo associations
COMPANY: NFS Edge Insurance Agency, a unit of Aon National Flood Services, through its Insurmark division
BEST RATING: A (Excellent)
AVAILABILITY: Coverage is available through independent agents and brokers.
FOCUS: As part of the NFIP, the Residential Condominium Building Association Policy (RCBAP) provides flood coverage for residential condominium associations. NFS Edge has launched a private flood insurance alternative to the RCBAP tailored to meet the needs of condo associations located in high-risk flood areas.
“While RCBAP is not new, the private approach is,” explains Mark Nies, underwriting team leader at the NFS Edge Insurance Agency. “Over the past two years, the NFIP has experienced numerous changes. These legislative changes to the NFIP program have led to significant premium and fee increases in an effort to be more actuarially sound. Our product competes with the RCBAP policies”—particularly in high-risk and coastal areas.
NFS Edge’s private alternative helps eliminate some of the hassle associated with managing flood insurance. “Experiencing a flood can be overwhelming for condo associations because they must deal with a wide range of damage—from property to common area to individual units—and multiple owners,” says Timothy McCoy, managing director, NFS Edge. “We believe flood insurance should not add to that stress.”
Another major advantage to NFS Edge’s private alternative is cost management. “Agents tell us their clients’ biggest pain point is the constant increase in the cost of their condo association flood insurance policy,” McCoy says. “And because condo associations have had only one option for coverage until now, they had no way to manage their costs.”
Plus, the product “frequently requires less information and is easier to underwrite and quote the coverage—saving agents and associations valuable time,” McCoy adds.
UNDERWRITING: Coverage options include up to $5 million primary flood coverage, with excess options available; $10,000 minimum deductible per building; $25,000 deductible per occurrence for multi-building condos; coverage on building and association personal property (not individual unit owners’ personal property); and NFIP Coverage Guarantee endorsement.
MINIMUM PREMIUM: None.
TARGET: Residential condo associations up to $50 million in value, three stories and higher, in coastal zones A and V, and preferably tower structures. The “sweet spot” is residential condo associations with buildings higher than six stories and a ground floor flow-through garage.
COVERAGE TERRITORY: All 50 U.S. states.
CONTACT: Mark Nies, underwriting team leader; NFS Edge Insurance Agency, 4 West Main Street, Suite 600, Springfield, OH 45502; 937-346-2902.
Ronimarie Acord is an IA contributor.