Flood Insurance - Alternative Insurance Agency

Flood Insurance

Natural calamities and man-made disasters have become a common occurrence these days leaving a great impact not only on human lives but also on properties. Heavy rains, almost always, cause rivers to overflow and cause dam wreckage which often leads to flooding.

Severe flooding becomes the inevitable consequence of these torrential heavy rainfalls with dam failures, clogged sewage and drainage systems, contributing to the problem. Floods can cause widespread damage which makes it difficult for people to recover from even after the water subsides.

Water damage coverage, in most homeowner’s policies, does not cover water that rises from the ground, only water that comes into contact first with your home. This is where we draw the line between what can be covered by Homeowners Insurance Policy and a Private Flood Insurance.


  1. You live near a river and the river overflows all around your neighborhood and the water seeps into your house, this would be covered by your flood insurance policy.
  2. Powerful winds cause your tree to land on your roof creating a hole for the rainwater to accumulate inside: wind is the cause of damage, so your homeowner’s policy would cover this.
  3. A pipe burst in your house and water goes all over your hardwood floors: this is internal water damage and therefore covered by your homeowner’s policy.
  4. Heavy rains inundate the area, water rises and enters your property and your neighboring property: flood insurance would cover this.

The best way to cover losses caused by water damage is to get a private flood insurance.

What is flood insurance?

Flood Insurance is a type of insurance coverage that aims to reduce the impact of property loss due to flooding. With flood insurance on hand, you would not have to worry much about the potential damages that can be caused by these dangerous waters.

How can Alternative Insurance Agency Help You?

While the government backed NFIP was designed to solve the need for a comprehensive flood insurance coverage, it has come under fire recently due to its rate hikes and other loopholes with its implementation.

We offer Private Flood Insurance as a less costly and more technologically advanced system to insure properties located in special flood hazard areas. Alternative Insurance Agency guarantees private qualified insurance products that are accepted through all major lending institutions.


“Some of the key coverage differences between the NFIP and private insurance policies include offering replacement cost on contents, no 30-day waiting period, and no elevation certificate. The coverage also offers a loss of use component, which isn’t available through NFIP policies, and up to $500,000 on the building limit and up to $250,000 on replacement and contents with underwriting approval.”

Source: https://www.insurancejournal.com


How does Private Flood Insurance differ from others?

Basically, Private Flood Insurance market got larger, more competitive, and less profitable.

According to 2017 statutory insurance filings compiled by S&P Global Market Intelligence, The U.S market for private flood insurance increased by 51.2 percent last year.

Private cover represented 15 percent of all flood premiums nationwide. Private flood premiums grew by at least double-digits in 2017 in every state. The private market grew fast. Not only did private flood insurance got bigger, it also became more competitive especially at the state level. Nonetheless, the private flood market was also less profitable in 2017 compared to 2016.

With 36.7 premium dollar, Florida was the fastest growing private flood insurance market. Florida also created an innovative regulatory framework for standalone flood coverage in 2014 and built on that framework in 2017. It became the largest market for private flood insurance.

77 percent of Florida property owners could find more affordable and better options in the private market than through the NFIP. With private flood insurance, there’s no expensive elevation certification required. The latter was comprised of properties that are required to buy coverage because they lie in most flood hazard areas.

Even though it’s small relative to the federal program, the private flood market is growing quickly, more mature, and is now paying real claims. Certainly, getting a private flood insurance is the best decision to do.

Not all private flood companies are the same. With Alternative Insurance Agency, we guarantee private flood insurers qualified insurance products that are accepted through all major lending institutions. We will continue to bring the best insurance ALTERNATIVES to our customers.