Neptune Flood expands offerings

Private flood insurer Neptune Flood has expanded its offerings with the introduction of an excess flood insurance product tailored for residential, commercial, and condominium (RCBAP) properties.

The new product is designed to provide coverage beyond the limits set by the National Flood Insurance Program (NFIP), which caps at $250,000 for residential and $500,000 for commercial properties. These limits have remained unchanged for over 25 years, a period during which the average price of a US home has significantly increased.

The excess flood insurance offered by Neptune allows policyholders to maintain their existing NFIP policy while securing additional coverage, offering up to $4 million in protection. This additional layer of insurance was described as “critical” for homeowners and business owners seeking to fully protect their assets against flood-related losses that exceed NFIP limits.

Neptune’s excess flood policy also introduces enhanced protections not available through the NFIP. For residential policyholders, options include coverage for temporary living expenses, contents in basements, structures not attached to the main dwelling, pool repair and refill, and replacement cost valuation for personal property. Commercial policyholders can opt for added business interruption insurance and coverage for the full replacement cost of buildings.

NFIP constraints

The Government Accountability Office reported that over two million NFIP policies have not yet adjusted to their Risk Rating 2.0 price, with annual premium increases capped by Congress at 18% for most residential policies and 25% for commercial policies. Given these constraints, many NFIP policyholders will not see their premiums reflect the full risk for over a decade.

Trevor Burgess, president & CEO of Neptune, highlighted that while many customers will ultimately find Neptune’s standard flood policy more advantageous as their NFIP premiums reach market rates, the company’s excess product serves as an interim solution to bridge the current coverage gap.

Jean-Luc Eckstein, Neptune’s chief customer officer, also emphasized the demand for excess coverage among agents seeking to address the limitations of NFIP policies for their clients.

“Until the subsidies from the NFIP go away, this new excess product can help ensure our customers get the coverage they need,” Eckstein said.

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