In response to the widespread devastation caused by Hurricane Helene, insurance agents and companies now have a vital opportunity to assist clients whose flood insurance policies lapsed before the storm hit. The Federal Emergency Management Agency (FEMA) has extended the renewal grace period for National Flood Insurance Program (NFIP) policyholders across seven affected states, offering a crucial window for agents to help customers reinstate their coverage.
Extended Grace Period Offers New Chance to Protect Clients
Typically, NFIP policyholders have a 30-day grace period after their policies expire to renew and maintain coverage for damages occurring during that time. FEMA’s new deadline extends that period until November 26, 2024, providing a unique opportunity for agents to reach out to clients who may have missed the initial renewal window.
This extension is especially relevant for agents whose clients’ flood policies expired shortly before Hurricane Helene. For instance, a policy that lapsed on August 28 would have typically required renewal by September 26. Under the new guidance, that same policyholder now has until November 26 to renew, offering a key window to secure flood coverage retroactively.
A Proactive Approach for Agents to Support Clients
Jeff Jackson, interim senior executive of the NFIP, emphasized the importance of the extension in supporting both policyholders and insurance professionals. “By extending the grace period for renewing policies, we are giving our policyholders some breathing room and demonstrating that the National Flood Insurance Program stands with them at a time of tremendous heartache and difficulty.”
For insurance agents, this presents a significant opportunity to re-engage with clients who may be vulnerable due to policy lapses. Agents should proactively reach out to clients impacted by Helene, review their insurance status, and facilitate the renewal process to ensure they are protected. Additionally, agents can use this extension as a way to strengthen client relationships by offering much-needed support during a difficult recovery period.
Insurance Companies Can Play a Key Role in Recovery Efforts
Insurance companies also stand to benefit from this renewal window. By reinstating policies, companies can help avoid further coverage gaps while contributing to broader recovery efforts in heavily impacted areas. Agents should work closely with their underwriting teams to expedite these renewals and ensure that clients are aware of the new deadline and its potential impact.
FEMA encourages policyholders to contact their insurance providers to confirm eligibility for the extended grace period. For insurance professionals, this extension represents an opportunity not just to renew policies but also to deliver critical service to clients during a time of need.