Category: Management


Flood Endorsement vs. Flood Specific Policy: What’s the Difference?

Posted by: Cornelia Winn

As a property and casualty (P&C) insurance agent, one of the most important factors of your job is to ensure that your customers understand their policies, coverage limits, and other options available to them through their insurance carrier. Some big complications involved in claims experiences can stem from misunderstandings between agents and policyholders in the beginning stages of putting a policy in place, especially when it comes to selling flood insurance.

Even if you don’t sell flood insurance often, it’s vitally important that you know the difference between a flood endorsement and a flood specific policy so that you can relay this information to your customers with ease.

What is a Flood Endorsement?

As you know, any kind of endorsement is a document in an insurance policy that adds or changes coverage for the insured. Not all insurance carriers offer both homeowners insurance and flood insurance, but those that do (such as ASI) are often able to add a flood endorsement to an existing policy for an additional cost to the policyholder’s premium.

One of the great benefits of being able to offer this to customers is the streamlining of the claims process, which will all be able to be taken care of through the same carrier in the case of a flood.

What is a Flood Specific Policy?

A flood specific policy is different from an endorsement in that it is its own policy and doesn’t have to be through the same carrier as the regular homeowners’ policy. Insurance agents who sell policies for carriers like ASI are able to provide coverage to customers who have a standard policy with a company that does not offer any flood insurance.

If you have a sales lead for flood insurance, be sure to discuss the differences between the endorsement and the flood specific policy, explore the options available to the policyholder and ensure they understand what is and isn’t covered by their current policy.