What is the National Flood Insurance Program continuous coverage rule? What qualifies and what doesn't? We are going to discuss that a little bit.

The continuous coverage rule states that a property has had continuous coverage on it through the National Flood Insurance Program. Continuous coverage goes away if a policy has lapsed for payment. So when the policy is reinstated the continuous coverage discount goes away which can be significant. The way NFIP looks at this rule is like customer loyalty they are giving a credit for having continuous coverage. As a result a customer maybe receiving a discount because they have had a flood policy when the flood zone was different or a lower risk zone. 

Its important to understand when selling a home how to keep the continuous coverage rule in place correctly. If you do a policy transfer or assumption then the continuous coverage rule on the property can stay in place. However if you take out a new policy then the continuous coverage rule would not be in place. So its very important to understand the correct process of doing a policy assumption. 

Its also important to pay attention to flood zone changes as these change frequently. So if your flood zone is changing from a flood zone X or low risk flood zone to a flood zone A or AE which is a high risk zone then make sure to take this flood policy out before the change. This way it will qualify for continuous coverage when the zone changes and could make selling your property easier.

So if you have questions about continuous coverage, what the discount is, or if you qualify please visit our website Flood Insurance Guru. You can also subscribe to our YouTube Channel or like our Facebook page where we do daily flood education videos. Remember we have an educational background in flood mitigation so we can help you understand your flood insurance, risks, and mitigating your property long term.

Chris Greene

Author

Chris Greene

President of The Flood Insurance Guru
M.S. in Emergency Management with a focus in Flood Mitigation
flood@communityfirstagency.com