Why Private Flood Insurance Program (PFIP)?
- Private Flood Insurance Program (PFIP) was created because home and business owners wanted better flood coverage than what is available through the standard markets today. Many homes and businesses far exceed the maximum limits that are only available through the National Flood Insurance Program (NFIP).
- Home and business owners wanted more options to enhance the protection of their building structures. Under current NFIP guidelines for homes and businesses, most NFIP policyholders have no choices for higher limits and/or higher deductibles.
- Home and business owners don't want to have the standard waiting period for coverage to take effect.
- Home and business owners wanted lower rates and fees. Starting in October 1, 2013, premiums for those impacted by the recent changes in the NFIP will see an increase of 25 percent per year, for the next four years, until the new rates are reached. In some instances, current NFIP policyholders will see a new rate immediately if their NFIP policy lapses, a new property is purchased, a new NFIP policy is purchased or the property suffers repeated flood losses.