In the wake of increasing climate change and the resulting challenges, flood insurance has become a critical issue for homeowners, especially those living in coastal areas. Coastal Insurance Solutions, under the leadership of CEO David W. Clausen (pictured), aims to set the standard for private flood insurance nationwide.

Addressing Misconceptions About Flood Insurance

There are many misconceptions surrounding flood insurance, especially regarding what constitutes flood damage. Clausen addressed this issue head-on, saying, “Homeowners often mistakenly believe that flood insurance covers things like burst pipes, but it doesn’t—it covers things like tidal surges or major flooding.”

Educating consumers about these nuances is critical to ensuring they get the right coverage. Clausen also emphasized the benefits of exploring private flood insurance markets, which can offer significant savings and more comprehensive coverage than the standard FEMA offering.

“I would advise people to explore the private flood insurance market, because there are more options, higher limits, and the potential savings can be significant,” he added.

Dealing with market challenges

The insurance market has faced significant capacity issues, particularly in the reinsurance sector. Many companies have turned to the surplus lines market to overcome these challenges, but Clausen remains optimistic about the future. “I think capacity will increase and normalize as reinsurance contracts are negotiated, which will lead to renewed appetite in the market,” he said.

This positive outlook is essential for Coastal Insurance Solutions as it continues to expand its reach. By staying ahead of market trends and adapting to changing conditions, the company ensures that it can consistently provide reliable coverage to its customers.

Embracing Technology and Innovation

The future of flood insurance also lies in the integration of advanced technology and innovative approaches. Clausen is both optimistic and cautious about these developments. “Business intelligence is a growing area in insurance,” he says. “Everyone will benefit from it,” but he also acknowledges that “there is no way to predict the future perfectly, so models have their flaws.”

Nationwide access and strong partnerships

Coastal Insurance Solutions’ mission is to ensure that homeowners across the country have access to a broad range of flood and homeowners insurance options. This nationwide approach has been pivotal in addressing the unique needs of diverse communities across the country. “Partnerships have been a key pillar of our nationwide expansion strategy,” said Clausen. “We believe the best partnerships add value to both sides.”

The company offers special flood insurance quotes online, providing an alternative to the Federal Emergency Management Agency’s National Flood Insurance Program.