Neptune Flood, a private flood insurance company, has recently introduced its new excess flood insurance product. This insurance offers additional coverage beyond what’s provided by the National Flood Insurance Program (NFIP).
With this excess flood policy, customers can get coverage beyond the maximum limit offered by the NFIP. This means they can keep their NFIP policy and still have additional coverage if they haven’t reached their full market rate.
The NFIP has limits of $250,000 for homes and $500,000 for businesses, but these limits haven’t changed in over 25 years. Meanwhile, property prices in the US have doubled. Neptune’s excess product fills this gap by offering over $4 million in coverage, protecting homeowners and business owners from losses exceeding NFIP limits.
Moreover, Neptune’s excess flood policy allows customers to purchase additional protections not available through the NFIP. For instance, coverage for temporary living expenses, basement contents, unattached structures, pool repair and refill, and replacement costs of contents. Business owners can also secure coverage for business interruption and building replacement costs.
As reported by the Government Accountability Office, over 2 million NFIP policies have yet to reach their full price under the new Risk Rating 2.0 system. Since Congress has limited NFIP premium increases to 18% per year for most homes and 25% per year for businesses, many policies will take over a decade to reach their full price.
Trevor Burgess, Neptune’s Present and CEO, notes, “While most of these customers will be better served by Neptune’s standard flood policy once they reach their full NFIP price, in the interim, Neptune’s excess policy can close the coverage gap.”
Jean-Luc Eckstein, Neptune’s Chief Customer Officer, highlights that Neptune’s new product addresses the gaps left by outdated NFIP policies, stating, “Our agents have been asking for excess coverage to help make up for the inadequacies in the NFIP policy. Until the subsidies from the NFIP go away, this new excess product can help ensure our customers get the coverage they need.”
Overall, Neptune’s excess flood insurance product offers customers the flexibility to enhance their coverage beyond NFIP limits. With customisable options and increased coverage limits, Neptune enables homeowners and businesses to comprehensively protect their valuable assets.
