Harrisburg, PA — Today, the Pennsylvania Insurance Department (PID) reassured homeowners, homebuyers, and lenders that flood insurance remains available in Pennsylvania despite the federal National Flood Insurance Program’s (NFIP) temporary loss of authority to renew or issue new flood insurance policies.
“Congress has once again failed to extend the NFIP, leading to more disruption in our housing markets. We want to make sure Pennsylvanians know that they still have strong, reliable, and affordable options for protecting their homes through private flood insurance while the NFIP remains unable to write new or renewal business,” said Pennsylvania Insurance Commissioner Micheal Humphreys. “It’s important to remember that if it rains, it can flood, and flooding can happen anywhere in Pennsylvania. The current private flood insurance market can provide consumers with choices to ensure they’re not left unprotected when floods strike.”
Pennsylvanians can continue to purchase private flood insurance through:
- Licensed insurance companies: PID reviews and approves these insurers’ policy forms and rates.
- Surplus lines insurers: While not licensed in Pennsylvania, these insurers are licensed in other states and authorized to sell policies here through licensed surplus lines brokers. These policies are legitimate, widely used, and often provide competitive pricing compared to NFIP coverage.
Many Pennsylvanians may find that private flood policies offer broader coverage and, in some cases, lower premiums than NFIP policies.
Several well-established companies actively sell private flood insurance in Pennsylvania. More information to help Pennsylvanians find coverage is available on PID's Flood Insurance web page.
What Homebuyers and Homeowners Should Do
- Homebuyers: Pennsylvanians whose lenders require flood insurance can often meet this requirement through private flood policies. Speak with your lender and insurance agent early in the process.
- Current policyholders: Pennsylvanians who have an active NFIP policy will have a valid policy until its expiration. For renewals, or if seeking new coverage, these Pennsylvanians should contact their insurance agent about private flood insurance.
- All residents: Review your property’s flood risk and consider coverage even if you are not required by law or your lender to carry it.
Flooding is one of the most common and costly natural disasters in Pennsylvania - and Pennsylvanians don’t need to live in a federally designated special flood hazard area to be at risk:
- Federal Emergency Management Agency (FEMA) reports that 20% of NFIP claims come from properties outside Special Flood Hazard Areas (SFHAs).
- A CoreLogic study identified over 515,000 Pennsylvania properties outside FEMA-designated SFHAs that still face moderate to high flood risk.
PID urges all Pennsylvanians, including renters, to carefully evaluate their flood risk and consider coverage, regardless of flood zone designation.
PID continues to prioritize flood preparedness, raise awareness of flood risks, and take steps to make flood insurance more accessible and affordable for Pennsylvanians. Since 2023:
- Governor Josh Shapiro signed into law Act 22 of 2023 that created the Flood Insurance Premium Assistance Task Force to study ways to make flood coverage more affordable and accessible. The Task Force provided a final report of recommendations on July 2024.
- PID established a Flood Insurance Ombudsman to help consumers navigate coverage options and connect with available resources.
- PID led efforts to expand training requirements for insurance producers, resulting in legislation that requires that at least two hours of continuing education focus on flood insurance.
- PID enhanced its outreach and education efforts during Flood Awareness Week and throughout the year to remind residents that flood damage is not covered by most homeowners or renters’ insurance, partnering with local governments and emergency management agencies to share resources, promote mitigation efforts, and highlight available insurance options.
Pennsylvanians can learn more about insurance by visiting PID's website. Consumers with any questions or concerns regarding their insurance policy, or to file a complaint, can visit pa.gov/consumer or call 1-866-PA-COMPLAINT (1-866-722-6675).