Harrisburg, PA – The Pennsylvania Insurance Department today announced new action taken in the last six months to protect Pennsylvanians from incurring substantial financial losses associated with flood damage. These new efforts include requiring insurance agents and brokers selling property and casualty insurance to take continued education credits focused on flood, and PID’s addition of a Flood Insurance Ombudsman to serve as the primary contact to coordinate consumer education and outreach.
The action implements recommendations included in the Flood Insurance Premium Assistance Task Force’s Final Report (PDF).
Floods can cause property damage resulting in tens of thousands of dollars in uncovered losses. These new measures are a first step to ensuring more Pennsylvanians are financially protected against flood losses. Pennsylvania is a flood-prone state, and even residents who don’t live in a floodplain are at risk of severe flooding. It’s our hope that this report, and its recommendations, continue to spur new ideas that will further protect Pennsylvanians from unnecessary flood damage and losses.
— Pennsylvania Insurance Commissioner Michael Humphreys
Last July, the Flood Insurance Premium Assistance Task Force presented Governor Josh Shapiro with recommendations to increase flood risk mitigation and bolster flood resiliency.
Since July:
- Governor Shapiro signed Act 142 of 2024 into law, which will require at least two of the 24 credit hours of continuing education to be focused on flood insurance for insurance agents and brokers selling property and casualty insurance.
- PID added a Flood Insurance Ombudsman to serve as the primary contact for FEMA and PEMA to coordinate consumer education and outreach. This position will spearhead innovative solutions to increase access to flood insurance and coordinate with stakeholders to continue the collaborative efforts of the task force.
“I have witnessed firsthand the devastation of localized flooding in communities across our Commonwealth, often due to flash flooding outside traditional flood zones,” said PEMA Director Randy Padfield. “PEMA continues to work hard to help people and communities recover from floods and mitigate future flooding. However, the best thing any homeowner or renter can do is understand the flood risk to their properties and protect against future losses through insurance as other financial assistance is often limited or non-existent after a flooding disaster.”
All of Pennsylvania’s 67 counties have seen destructive flooding, yet just about one percent of households in the state are currently insured for flood risk, which is why PID is encouraging residents to consider purchasing flood insurance prior to spring.
Flood insurance, available through the National Flood Insurance Program (NFIP) and private insurers, can be purchased to cover almost any building and its contents, including rental property and condominiums. Renters also can buy flood insurance protection for their possessions.
Residents are encouraged to evaluate flood insurance policies now, because policies may not be active immediately upon purchase. To prevent the purchase of flood insurance as a storm is headed in the direction of a property, Congress implemented a 30-day waiting period before a policy goes into effect. There are some exceptions, such as increasing, extending or renewing a mortgage.
Information on both the NFIP and private flood insurance is available on PID’s one-stop flood insurance webpage.
Consumers with questions or wishing to file a complaint can contact PID's Consumer Services Bureau, or by calling 1-877-881-6388.