Time to take a forward-thinking approach to flood insurance
Time to take a forward-thinking approach to flood insurance | Insurance Business America
Catastrophe & Flood
Time to take a forward-thinking approach to flood insurance
Addressing the misconceptions and navigating the market challenges
Catastrophe & Flood
By
Chris Davis
In the wake of increasing climate change and its resulting challenges, flood insurance has become a critical issue for homeowners, particularly those in coastal areas. Coastal Insurance Solutions, under the leadership of CEO David W. Clausen (pictured), is aiming to set the standard for private flood insurance nationwide.
Addressing flood insurance misconceptions
There are many misconceptions surrounding flood insurance, particularly regarding what constitutes flood damage. Clausen addressed this issue directly, stating: “Often homeowners mistakenly believe that flood insurance covers things like a burst pipe, but it doesn’t – it covers things like tidal water or significant flooding.”
Educating consumers about these nuances is crucial to ensuring they have the appropriate coverage. Clausen also emphasized the benefits of exploring private flood insurance markets, which can offer significant savings and more comprehensive coverage compared to the standard FEMA offering.
“I’d advise people to explore the private flood insurance market as there are more options, higher limits, and the potential savings could be significant,” he advised.
Navigating market challenges
The insurance market has faced significant capacity issues, particularly in the reinsurance sector. Many companies have turned to the surplus lines market to navigate these challenges, but Clausen has remained optimistic about the future. “I think capacity will increase and normalize as reinsurance contracts are negotiated, leading to a renewed appetite in the market,” he said.
This positive outlook is essential for Coastal Insurance Solutions as it continues to expand its reach. By staying ahead of market trends and adapting to changing conditions, the company ensures that it can consistently provide reliable coverage to its clients.
Embracing technology and innovation
The future of flood insurance also lies in the integration of advanced technology and innovative approaches. Clausen is both optimistic and cautious about these developments. “Business intelligence is a growing area in the insurance space. Everyone’s going to be leveraging it,” he said, while also acknowledging, “there’s no way to predict the future perfectly, so models have their flaws.”
Nationwide accessibility and strong partnerships
Coastal Insurance Solutions’ mission is to ensure that homeowners across the country have access to a broad range of flood and homeowners’ insurance options. This nationwide approach has been pivotal in addressing the unique needs of diverse communities across the country. “Partnerships have been a key pillar in our strategy to expand nationwide. We believe the best partnerships add value to both sides,” Clausen said.
The company offers private flood insurance quotes online, providing an alternative to FEMA’s national flood insurance program.
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