The National Flood Insurance Program (NFIP)
As Hawaii’s largest writer of flood insurance through the NFIP, we are committed to providing essential flood protection. Flood losses aren’t usually covered by commercial insurance. If you want flood coverage, you can apply for coverage through the National Flood Insurance Program (NFIP).
About the NFIP
Founded in 1968, the NFIP was created to be a self-supporting entity, paying claims from the premiums collected. It is now fully integrated into Risk Rating 2.0 — the new pricing methodology used by the Federal Emergency Management Agency (FEMA) to calculate flood insurance premiums for the National Flood Insurance Program (NFIP). Fully implemented in April 2023, it replaces the previous zone-based system with an individualized, property-specific risk assessment to ensure more equitable and transparent rates.
Definitions and Changes
Before purchasing flood insurance, it’s important to understand some key definitions and program changes. Please see our FAQ below for more.
FAQs
How is a flood defined?
A flood is defined as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land of two or more properties from an overflow of inland or tidal waters, unusual surface water runoff, or mudflows. It also includes the collapse or subsidence of land along a body of water due to wave or current action.
Key components of the FEMA definition:
● Inundation: The condition must be a partial or complete covering by water.
● Scope: It must affect either two or more acres of normally dry land or two or more properties.
● Causes: The flooding can be caused by:
- Overflow of inland or tidal waters
- Unusual and rapid accumulation or runoff of surface waters from any source
- Mudflow: a river of liquid or flowing mud on normally dry land
- Collapse or sinking of land along a lake or similar body of water, caused by erosion or undermining from waves or currents
Do I need commercial flood insurance in Hawaii?
You likely need commercial flood insurance in Hawaii if your business is in a high-risk flood zone and has a mortgage from a federally regulated lender.
What should I know about the policy surcharge?
To help offset flood program deficiencies, a federally mandated surcharge will apply to all new and renewed commercial flood policies. The $250 surcharge is fully earned and is not eligible for refunds due to cancellation or reduction of coverage.