You don’t have to be an expert in flood insurance to help your clients feel secure and position yourself as a valuable resource within your community. Here is a guide to understanding flood insurance essentials and how you can become an authorized flood agent.  

What is a Flood by National Flood Insurance Plan (NFIP) Standards? 

Before selling flood insurance, it is important to understand how the National Flood Insurance Program (NFIP) defines a flood. FEMA defines a flood as follows taken directly from the FEMA website. 

“A general and temporary condition of partial or complete inundation of 2 or more acres of normally dry land area or of 2 or more properties (at least 1 of which is the policyholder's property) from: 

A flood inundates a floodplain. Most floods fall into three major categories. 

Alluvial fan flooding is another type of flooding more common in the mountainous western states. Alluvial fan flooding is depicted on a Flood Insurance Rate Map (FIRM) as Zone AO, with a flood depth and velocity. 

Inundation must come from the following three sources.  

You will need to know what does not constitute a flood per NFIP. Landslides, slope failures and soil movements caused by liquidity down a slope do not meet NFIP’s criteria for flood events. Clear communication on what the policy covers and what it does not cover will help avoid confusion and set the right client expectations. 

The Importance of First Floor Height (FFH) 

First Floor Height (FFH) is a main factor in flood insurance rating under NFIP. FFH measures the height of a building’s first lowest floor in feet above the surrounding ground level. This is the Lowest Adjacent Grade or LAG. FEMA defines LAG as “Elevation of the lowest ground surface that touches any of the exterior walls of a building.” The foundation type also affects FFH. You will want to familiarize yourself with how FEMA determines FFH for different foundation categories. 

Slab on Grade Foundation (Non-Elevated) 

For buildings with a slab on grade foundation, FEMA measures FFH at the top of the slab. These are not elevated structures. The slab acts as the first-floor level. 

Basement (Non-Elevated) 

Basements pose special considerations and generate many questions. For this foundation type, FEMA measures FFH at the top of the next higher floor above the basement and excludes the basement itself. Fully below-ground basements and those with sunken segments such as those old-school sunken living rooms require precise measurement to ensure accurate insurance classification. To be a basement, all sides must be below ground. To learn more about basements, watch this FEMA video. 

Elevated Buildings without Enclosure (Posts, Piles, or Piers) 

For elevated structures without enclosed spaces beneath them, the NFIP determines FFH at the first elevated floor. As you may know if you live in the Southern states, these are common designs in flood-prone zones, and they have fewer coverage restrictions compared to enclosed elevated buildings. 

Elevated Buildings with Enclosure 

Before we discuss elevated enclosed building, you should understand the terms Pre-FIRM and Post-FIRM. FEMA defines FIRM as the “Official map of a community on which FEMA has delineated the Special Flood Hazard Areas (SFHAs), the Base Flood Elevations (BFEs) and the risk premium zones applicable to the community.” 

Pre-Firm is, per FEMA, “A building for which construction or substantial improvement occurred on or before December 31, 1974, or before the effective date of an initial Flood Insurance Rate Map (FIRM). 

Post-Firm is, per FEMA, “A building for which construction or substantial improvement occurred after December 31, 1974, or on or after the effective date of an initial Flood Insurance Rate Map (FIRM), whichever is later. 

Post-Flood Insurance Rate Map (FIRM) buildings are new construction and those built after the effective date of the first FIRM for a community.” 

Elevated buildings with enclosures vary based on the building’s compliance with floodplain ordinances. 

Understanding the nuances of Pre-FIRM vs. Post-FIRM and zone-specific requirements is essential when insuring elevated structures. Visit the NFIP website for more information.  

Subgrade and Elevated Crawlspaces 

For crawlspace foundations, the FFH is the first floor above the crawlspace floor. Pay close attention to whether the crawlspace is subgrade (below ground) or elevated because this impacts coverage and rating. 

Key Considerations for Basements 

Because they are below ground, basements offer unique challenges for flood insurance coverage. Even if a basement has egress points such as walkouts or windows, take particular care to identify whether it meets NFIP’s strict definition of a basement. 

Basement Coverage Limitations 

NFIP coverage for basements mainly includes the structure itself and certain machinery or equipment required for building utility. Covered items include sump pumps, furnaces, hot water heaters and similar appliances. The NFIP program offers limited coverage for contents, which includes only washers, dryers, portable air conditioners, food freezers, and the food within the freezer. 

Also, a partially below-ground room such as a walkout enclosure may not qualify as a basement if one side is fully above ground. Proper classification is essential to ensure clients have the correct coverage.  

Basement coverage is a frequent area of misunderstanding, so know how it applies so you can explain it to your clients before a loss occurs.  

How to Start Selling Flood Insurance 

Getting started with selling flood insurance under the NFIP is easier than you might think. Here is a step-by-step guide for becoming a qualified agent so that you can access the program.  

Step 1: Become Licensed 

Okay, we are going to assume you are licensed or soon will be. To sell flood insurance, you must hold a Property and Casualty (P&C) insurance license. This ensures you are already familiar with the fundamentals of property insurance policies. 

Step 2: Complete Required Training 

Federal law mandates that insurance agents complete Flood Insurance Reform Act (FIRA) training to sell NFIP products. These courses equip you with the knowledge needed to effectively serve clients in flood-prone areas. It is imperative that you complete these courses to learn more. Many offer CE credits, so it benefits you to watch them. Learn more about NFIP training at this link.  

Step 3: Choose Your NFIP Access Point 

Agents can access NFIP either through the Write Your Own (WYO) program or NFIP Direct. Both options provide standard NFIP pricing and policies, but they offer different benefits. 

Step 4: Submit Documentation 

Depending on your state’s licensing requirements, you may need to furnish additional paperwork when registering to sell flood insurance, including optional materials like proof of errors & omissions (E&O) coverage or “Doing Business As” (DBA) certifications. 

Step 5: Access Resources 

NFIP offers many excellent resources to help agents succeed. In fact, I based this entire article on an online seminar NFIP offered in March of 2025, “FAQs for Flood Insurance.” Other training courses include the Flood Insurance Manual, NFIP definitions and acronyms and training videos. These tools will increase your expertise, help to prevent E&O allegations, and build strong client relationships. Visit agents.floodsmart.gov for more details.  

Why Sell Flood Insurance? 

Flood insurance presents a unique opportunity for insurance agents. Flooding is the most common and costly natural disaster in the U.S., with many, many properties at some level of risk, even if the flood maps do not agree. By offering flood insurance, you are not just selling a policy, you are selling peace of mind critical for property protection and your client’s peace of mind. Many of your clients will think, “Why buy flood insurance? I will just rely on FEMA.” The truth is that FEMA cuts are inevitable under the current administration. These cuts may impact not only disaster relief, but other cats such as tornados and wildfire recovery.  

Use your blog, customer emails and social media to remind your insureds that catastrophes continue to occur, and their current insurance may be insufficient. 

A big part of our jobs as agents is to ensure clients feel secure against life’s uncertainties. By offering flood insurance and understanding key NFIP rules and processes, you will help provide clients with the right coverage while building trust and loyalty within your community. 

Finally, offering flood and excess flood coverage and documenting any rejections can help prevent a successful E&O claim. 

Top Tips for Agents 

Every time you write a property policy, be sure to offer a flood insurance quote to the client. Remember that relying solely on FEMA’s flood maps can be risky. These FEMA maps are often outdated or inaccurate. If your client declines, use the Big “I” declination form to document your file. Whether the insured chooses to sign and return or not, the evidence you sent the form helps defend you in case a client alleges you failed to offer flood insurance.  

To provide clients with a more realistic understanding of their flood risk, direct them to the First Street Foundation's website for an updated and thorough analysis of their property’s potential flood exposure. Not only is this free, but it also measures four other critical factors impacting the home’s location, fire, wind, air quality and heat.  

To learn more about how to offer flood insurance and how coverage applies, visit this site. Taking a proactive approach to offering flood insurance not only increases your credibility and better serves your client’s needs, but it can also help protect you against an errors & omissions failure to offer coverage claim.  

Flood insurance is not simply good business; it is an opportunity to make a meaningful difference. Get started today and become an agent who does not shy away from writing flood insurance. 

Folks, now you know enough about flood insurance to wade in. Below are the top reasons to offer flood insurance.