Homeowners Choice Property & Casualty has recently introduced Florida’s first regulated insurance company licensed solely for flood insurance.
The company, called TypTap, launched its website March 1. Through the site, consumers can get a flood insurance quote in minutes without having to phone an agent.
TypTap’s coverage limits are higher than those offered by the National Flood Insurance Program—up to $500,000 for buildings and $250,000 for contents through TypTap, compared to $250,000 for buildings and $100,000 for contents with the NFIP. The company also offers to cover the replacement costs of contents, whereas the NFIP is limited to actual cash value.
Other companies have offered private flood insurance coverage, typically for luxury properties or commercial facilities, but never has there been an insurer prior to TypTap that specialized exclusively in the sale of such insurance products.
Company officials said that TypTap’s target market is homeowners living in high-risk flood zones who end up paying premiums that surge by almost 18% a year.
Homeowners Choice CEO chairman and CEO Paresh Patel stated that about 700,000 out of the 2 million flood insurance customers in the state are classified as living in high-risk flood zones. He also noted that of the roughly 700,000 high-risk flood zones identified, 265,000 are located in the tri-county area.
Vice president of investor relations Kevin Mitchell said that TypTap can help homeowners who are “in trouble” with their properties. These consumers have homes that were built between the 1950s and 1970s, did not enjoy artificially low subsidized rates, and were issued with a "challenged elevation certificate."
"We could potentially offer them relief," Mitchell remarked.
