Flood Insurance Information for Producers

Producers and their insureds may want to consider flood insurance as an important component to close coverage protection gaps. When selling or renewing a home insurance policy, it is prudent for producers to advise applicants of the availability of flood insurance, through either the National Flood Insurance Program (NFIP) or a private insurer, and that without a separate flood policy, a loss caused by a flooding will likely not be covered under their standard home insurance policy. While flood maps available from the Federal Emergency Management Agency are a valuable resource, flooding can, and often does, occur outside of high-risk flood zones, and all property owners should seriously consider flood insurance.

Licensed insurance producers with active property, casualty or personal lines of authority should be aware that they must meet certain requirements in order to sell flood insurance in Massachusetts. 

Flood Insurance Disclosure Requirements

Massachusetts law prohibits requiring residents to purchase flood insurance coverage either from the NFIP or a private insurer in an amount over the outstanding principle of the mortgage. Additionally, residents cannot be required to purchase contents coverage or have a deductible of less than $5,000.

Producers must provide written notice to applicants looking to purchase flood coverage outlining these requirements. Please review Bulletin 2015-07: Mandatory Notice Requirement for Licensed Producers Selling Flood Insurance for more information and a copy of the required notice. 

Flood Insurance Continuing Education Requirements:

In order to sell flood insurance through the NFIP, licensed producers must complete 3 hours of Massachusetts approved continuing education relating to the National Flood Insurance Program. There are currently over 60 approved flood-related courses in MA.

Bulletin 2006-07 : Federal Emergency Management Agency Flood Insurance Training Requirements for Insurance Producers Selling Through the National Flood Insurance Program and Recommendations Regarding the Sale of Flood Insurance