“Oh By the Way” Flood Sale Ginny Pierson, CPCU, ARM, AU Director of Big “I” Marketing and Flood

Definition of a Flood Flood Affects two or more properties or Affects two or more acres Arising from surface water from any source Flood Zone The severity or type of flooding in a given area

“…but I’m not in a flood zone”

The risk severity varies by zone but all properties are in a flood zone. High-risk Zones Special Flood Hazard Area (SFHA) 1% annual chance (“100-year Flood”) Zones beginning with letters A and V Flood insurance required by most lenders Moderate – low risk Zones (Outside of SFHA) Zones B, C, X No mandatory purchase requirement, but lenders can still require Close to 1 out of 4 flood claims come from these Zones Undetermined Risk Zone D Flood Risks

Why Some Clients Ask For Flood Insurance Lender requirement of coverage for a mortgage closing Client has had a personal flooding experience Client has an awareness of flood exposures through FloodSmart ’ s national marketing and advertising campaign Property owner received a map zone change notice

Why Clients Should Ask For It It can flood anywhere at anytime Not all events are declared a federal disaster Most homeowners policies and BOPs do not cover flood peril Ongoing updating of coastal and inland flood maps It ’ s the right thing to do

Why You Should Offer It Flooding is the #1 natural disaster in the United States Cross-Selling fosters other lines of business deepens the value of your client relationship Lowers E & O exposure to the agency Easier talk to have now than after an event

Have the Flood Talk Is Flood an easy sale? Remember the purpose of insurance: to protect your assets

Have the Flood Talk Your clients should have an understanding of: Their risk Their coverage The potential costs of flood damage The benefits of a flood insurance policy

Let’s Talk Create the Need Bust Myths/Overcome Objections Change the Perception of Risk Use Talking Points

Myth Busters 1.I already have homeowner insurance. Most homeowners insurance does not cover floods. 2.Floods? That’s what disaster assistance is for. Disaster Assistance is available only when the President declares a disaster. Federal disaster assistance is typically a loan that must be paid back with interest. 3.I live on a hill and am not a risk. If you live on a hill or in an area that has never been flooded, your risk may be significantly reduced, but it is not eliminated.

Myth Busters 4.I do not live in a flood zone. Everyone lives in a flood zone – it is just a question of whether you live in a low to moderate or high risk area. 5.Flood Insurance is too expensive. The average flood insurance premium is about $650 a year. If you live in a low to moderate risk area, you may qualify for a Preferred Risk Policy with a premium starting at $129 per year. 6.My area has never been flooded. The fact that a flood has not occurred recently doesn't mean one has not happened in the past or won’t occur in the future 7.I can’t purchase flood insurance because my property has flooded before. No matter how many times your property has flooded, you are still eligible to purchase flood insurance, as long your community participates in the NFIP.

Change Perception of Risk Everyone is at risk for flood damage. Floods happen in ALL 50 states. Flooding is our #1 and most common natural disaster. Flood maps will or have updated identifying properties as in different zones. Most homeowner insurance does not cover floods. You can purchase flood insurance no matter what your flood risk is. Preferred Risk Policies (PRP) provide protection at the best price.

Talking Points By the way, did you know that your property policy does not cover damage due to flooding. Just a few inches of water can cause tens of thousands of dollars in flood damage. Let’s talk for a few minutes about flood insurance. Get flood insurance now, because you can’t get it at the “last minute”.

YEAR 4 15 Best Time to Reach Out: When Decisions are Made Safety and Emergency Management Events: -Disaster preparation expo’s -Emergency or flood awareness events Flood Seasons Flood Anniversaries Changing Risks: -Map changes -Levee issues Other Opportunities to Have the Flood Talk

Tools and Resources ( agents.floodsmart.gov ) FloodSmart’ Cost of Flooding Tool 1,000 Sq Ft 2,000 Sq Ft 1" = $10,600 1” = $20,920 3" = $11,450 3” = $22,590 4" = $15,150 4” = $29,650 1' = $27,150 1’ = $52,220 3' = $36,600 3’ = $68,100 4' = $39,950 4’ = $74,580

Tools and Resources FloodSmart’s Video Library

18 Flood Risk Scenarios Levee Simulator Interactive Tools & Resources Seasonal Widgets

FloodSmart’s Agent Referral Program Easy to register Free pre-qualified leads: FloodSmart.gov Direct Mail Call Center DRTV Ads Tools

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Quoting Flood Insurance

Your Go-to Resource Ken Nuss Business Development Specialist Selective Insurance Company of America CN-101, 40 Wantage Avenue Branchville, NJ PH. (973) | FAX:

“Oh By the Way” Flood Sale Webinar Ginny Pierson, CPCU, ARM, AU Big “I” Flood 127 S. Peyton Street/Alexandria, VA Phone: x 5394/Direct Fax: