Neptune Insurance Holdings has raised its building coverage limit to $15 million across all primary and excess flood policies. The change applies to residential, commercial, and residential condominium building association (RCBAP) accounts.
The previous residential limit was $7 million. The National Flood Insurance Program (NFIP) caps building coverage at $500,000.
The move addresses a placement gap in the high-value property segment. Federal limits have left owners of larger properties without a full replacement value option.
The NFIP’s constraints provide the backdrop for the private market’s expansion. The NFIP carries $22.5 billion in debt to the US Treasury. Its authorization lapsed for 43 days during the government shutdown in late 2025. That pause stalled an estimated 1,300 home sales per day.
Congress extended authorization to September 30, 2026, the 34th short-term reauthorization since fiscal year 2017. FEMA’s Risk Rating 2.0 premium increases have reduced NFIP uptake, with steep declines in lower-income communities.
Trevor Burgess, chairman and chief executive officer of Neptune, said agents would now have more options for placing residential and commercial accounts.
“By increasing our building coverage limit to $15 million and expanding or adding key coverages, we’re giving agents more ways to protect residential and commercial property owners with the coverage they need,” Burgess said.
Neptune also raised business interruption coverage from $500,000 to $1 million and loss of rental income coverage for apartment properties from $500,000 to $1 million. RCBAP Renewal Price Protection, a new addition, allows condominium associations to lock in renewal pricing ahead of their next policy term.
Neptune operates as a managing general agent and carries no balance sheet insurance risk. Its $15 million building limit is backed by a panel of 40 capacity providers, including 32 reinsurance partners across eight distinct programs.
For 2025, Neptune secured more than $400 million in premium capacity, up from $300 million the prior year.
A Trump-appointed FEMA review council has endorsed proposals to move large portions of NFIP business into private hands, though those recommendations have not yet been enacted and remain subject to congressional and administrative action. Industry estimates put more than 15 million flood-exposed US properties as uninsured.
Neptune’s own research estimates 45% of NFIP claims occur outside mapped floodplains, a figure higher than independent studies, which put the range at 30% to 40%. This underscores the mismatch between federal flood maps and actual loss patterns.
California alone has 600,000 properties at substantial flood risk sitting outside FEMA-designated high-risk zones.
The limit increase arrives at a moment of notable market realignment. AM Best reported that private insurers held less than 13% of the total flood insurance market in 2016, rising to 27% by 2024. Adjusted figures suggest the actual share could approach 40%.
Burns & Wilcox vice president Brad Turner said agents are “proactively seeking out private flood insurance for the first time in history.” Higher private-market limits give those agents more placement options for high-value accounts the NFIP cannot serve.
