Trio of Companies Conceive Private Flood Solution

PRODUCT: FloodFLEX

COMPANIES: AmWINS, Lexington Insurance Company and The Flood Insurance Agency

BEST RATING: Lexington Insurance Company is rated A (Excellent).

AVAILABILITY: Coverage is available through any AmWINS broker or underwriter.

FOCUS: The Flood Insurance Agency (TFIA) specializes in the distribution of private flood insurance throughout the U.S. For over 25 years, TFIA has been at the forefront of the flood insurance industry.

Now operating as a program administrator for Lexington Insurance Company, TFIA provides access to private market flood insurance as an alternative to the NFIP. The private flood insurance program now insures over $4.5 billion of property spread over 25,000 risks and has registered over 3,000 independent agencies in 37 states to market the program.

“After the devastating hurricanes in the past two years and the extensive flooding that ensued, it became clear that there was a need for a new product that provided coverage for many of the unexpected expenses that insureds face in the aftermath of a flood,” says Evan Hecht, chief executive officer, The Flood Insurance Agency.

FloodFLEX was specifically designed for insureds “that want to insure themselves above and beyond a standard NFIP policy,” Hecht explains—“whether that be higher limits, excess over the NFIP or to utilize FloodFLEX for all out-of-pocket expenses typically associated with a flood loss covered under the NFIP.”

COVERAGE DETAILS: Coverage highlights include:

  • First-dollar primary building and contents coverage available up to $10 million for properties located in A, X and V flood zones, including almost all coastal properties.
  • $5,000, $50,000, $100,000, $250,000 and $500,000 deductible options.
  • A rate-lock feature, which provides the insured with options to lock in pricing for up to three years, regardless of losses incurred during that time.

FloodFLEX payments may be used by an insured for any purpose, ranging from lost income and depreciation to evacuation expenses for assisted living facilities and extended loss of revenue resulting from community blight. “Of course, FloodFLEX is also mortgage-compliant and can be used to satisfy the mandatory purchase requirements of all federally backed mortgages or loans,” Hecht adds.

UNDERWRITING: Requirements include a statement of values listing the replacement cost of the building, requested limits, number of floors, street address, flood zone, building elevation and construction type, as well as photos of the front, back and interior of the building.

Also required is a claims attestation signed by the insured stating how many losses they have experienced in the previous 10 years. Policies can be bound the same day the signed application is received by TFIA.

MINIMUM PREMIUM: There is no minimum premium, but there is a minimum earned premium provision closely tied to the seasonal flooding calendar to prevent policy cancellations once flooding season is over.

TARGET: FloodFLEX is available for commercial and habitational buildings located in high- or low-risk flood zones with replacement cost up to $20 million.

COVERAGE TERRITORY: All 50 U.S. states.

COVERAGE AVAILABILITY: All U.S. states except New York.

CONTACT: Eric Weber, executive vice president, The Flood Insurance Agency; 352-363-6645.

Will Jones is IA senior editor.