Private flood insurance often provides better coverage at a lower price when compared to the National Flood Insurance Program (NFIP), but this is especially true for homeowners with lower incomes. Here, A vehicle sits submerged in flood water following Tropical Storm Imelda in Fannett, Texas, U.S., on Fri., Sept. 20, 2019. (Sergio Flores/Bloomberg) Private flood insurance often provides better coverage at a lower price when compared to the National Flood Insurance Program (NFIP), but this is especially true for homeowners with lower incomes. Here, A vehicle sits submerged in flood water following Tropical Storm Imelda in Fannett, Texas, U.S., on Fri., Sept. 20, 2019. (Sergio Flores/Bloomberg)

A recent study that my company, Poulton Associates, LLC, did in conjunction with HazardHub discloses that those with lower incomes pay a higher rate than those with higher incomes through the National Flood Insurance Program (NFIP). This is especially significant when examined in concert with FHA (Federal Housing Administration) insured borrowers because the FHA was created to assist lower-income borrowers in keeping their monthly mortgage payments as low as possible. It seems only natural, therefore, that the FHA would champion private flood insurance as a less costly alternative to the NFIP.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Loss Control
Weather Risk