Neptune Flood Insurance (Private) vs. FEMA’s National Flood Insurance Program (Public)

neptune flood insurance vs fema flood policy

When most people think of flood insurance, they think of the National Flood Insurance Program (NFIP) offered by the Federal Emergency Management Agency (FEMA). However, there is another option – private flood insurance. Private flood insurance is offered by insurance companies such as Neptune Insurance and can sometimes offer lower premiums than NFIP policies as they use a different approach to rating.  But which is right for you?

Both options have their pros and cons, so it’s important to weigh them carefully before making your decision. Let’s take a closer look at each one.


  • A Flood insurance policy protects against damage caused by flooding and covers the cost of repairing or rebuilding your home up to the policy limits and certain personal belongings that were damaged or destroyed.
  • Nearly everyone can benefit from flood insurance, not just those living in high-risk flood areas.
  • NFIP is a government program administered by FEMA. As the industry-leading public flood insurer in the U.S, they offer widely accessible coverage to repair flood-damaged property.
  • Private flood insurance companies like Neptune provide robust coverage customized to meet your exact needs and lifestyle. Some benefits include coverage limits of up to $500,000 on personal property, the ability to insure your belongings to full replacement cost, no-hassle underwriting, and wide lender acceptance.

What is Flood Insurance and what does it cover?

Flood insurance is a type of insurance that helps to protect against damage caused by flooding. It can cover the cost of repairing or rebuilding your home and replacing certain personal belongings that were damaged or destroyed. The amount of coverage you need will depend on the value of your home, personal belongings, and the extent of the flood risk in your area.

Who needs flood insurance?

If you don’t live in a coastal town, is flood insurance necessary? The answer is likely yes as flood damage from your home can happen in many ways.

Flood events include the following:

  • Storm-related flooding from the river, coastal waters, and lakes
  • The collapse of water-related structures — seawalls, dams, levees, etc.
  • Heavy rain that results in water pooling in low elevation areas
  • Mudflow in typically dry areas

Flood insurance can also be contractually required. This includes those with a mortgage from a federally backed or federally regulated lender and those with a mortgage backed by a federal agency like the Federal Housing Administration, Department of Agriculture, or the Department of Veterans Affairs.

So, if you’re living in an area with a high risk of flooding (and, even if you don’t), it’s probably wise to consider flood insurance. As the saying goes, it’s better to be safe than sorry.

Private Vs. Public Flood Insurance: What’s The Difference?

Public flood insurance is purchased through the NFIP — a government program administered by FEMA. The program was created to increase the availability to help people living in high-risk flood zones get insurance. However, any program designed for the masses is not going to be right for everyone. With the recent rating change to NFIP 2.0, those who had favorable rates could see an increase. Additionally, those who might expect a favorable rate may be surprised to see a rate that is higher than expected.

In contrast, private flood insurance is purchased through a private insurance company and is not regulated or backed by the government. The rating methodology for private flood insurers is different than that of the NFIP and so some might find a more favorable rate by quoting with a private insurer like Neptune Insurance. Private Flood Insurers use computer generated algorithms to determine flood insurance rates.  In some cases, private flood insurance can be 50% or more less expensive than FEMA flood insurance. Perhaps one the greatest benefits is the ability to customize. The private flood insurance provider Neptune allows a suite of customizations so that policies meet the unique needs of its customers instead of a one size fits all solution.

FEMA’s National Flood Insurance Program (Public)

FEMA’s National Flood Insurance Program (NFIP) still serves as the base policy for most homes insured for flooding. The public program actively insures 3.4 million homes and covers 91% of the flood policies in the United States. For decades, flood insurance was considered too big a risk for most insurers, leaving homeowners with few options. With nearly 75% of declared disasters in the U.S. involving flooding and most flood-related risks not covered by standard homeowner or business insurance policies, the market gap left millions of property owners without viable coverage options. The NFIP was created in 1968 to address this market gap and offer universal access to flood coverage for U.S. homeowners and businesses.

Neptune Flood Insurance (Private)

Established in 2016, Neptune Flood Insurance redefines the flood market by bringing affordable coverage for high-value homes with potential savings of up to 25%. Neptune Flood leverages LiDAR technology, the same tech used by NASA and the US military, to build its flood risk maps. Using advanced technology makes it possible to predict flood risk more accurately, creating a market for private flood insurance policies that exceed the coverage of traditional NFIP policies.

Neptune’s policies are designed to be a plug-in replacement for NFIP policies, but with options to expand coverage limits and broaden policy coverage through customizable policy endorsements. With more innovative techniques to assess risk more accurately, this tech-savvy insurer offers higher available coverage limits, competitive rates, and coverage that addresses the gaps often left behind by traditional policies.

Expanded Coverage Options:

  • Replacement cost for contents coverage: Policies with replacement cost for contents coverage provide coverage for belongings based on a depreciation deduction. This structure leaves many homeowners underinsured. Neptune Flood lets you insure to full replacement value, giving you the protection you need if disaster strikes.
  • Temporary living expense: When a covered claim forces you to leave your home, your Neptune Flood policy can help pay for additional living expenses such as lodging or the extra cost of eating out with up to $10,000 in added protection.
  • Basement contents coverage: Standard NFIP policies limit basement coverage to attached fixtures and select appliances. Neptune Flood can insure up to $10,000 in personal property in your basement.
  • Pool Repair & refill: Standard NFIP policies exclude pool coverage, leaving a potentially costly gap in protection. With Neptune, you can choose the coverage you need to repair and refill your pool after a covered loss.
  • Coverage for additional buildings: Protect additional buildings on your property with up to $50,000 in added coverage for all unattached structures, such as detached garages, pool houses, and more.

Contact Coastal Insurance today for affordable flood Insurance.

Don’t get caught in the eye of the storm, uninsured. Coastal Insurance works with the nation’s leading insurers for flood coverage and high-value home insurance. Our team of experienced agents will help you design a customized protection package that safeguards your lifestyle from floods, fires, and the unexpected at the best price possible. Contact the experts at Coastal Insurance today to learn more.

About the Author

David W. Clausen is the CEO of Coastal Insurance Solutions. With over 20 years’ experience and over 1 billion insured, David and Coastal Insurance Solutions are the recognized leaders in high net worth insurance.  For the third consecutive year, David Clausen has been awarded Top Producer by Insurance Business America . David is a trusted high net worth insurance expert who’s published more than 200 articles. His articles & press releases have generated over 500K pageviews and has been featured on blogs such as Google News, Yahoo Finance, CNBC, Market Watch, Fox, The New York Times, etc.  David founded Coastal Insurance Solutions in 2001 after earning a BBA from the State University of New York College at Oswego.

Need assistance now?

Give us a call:
(631) 782-3175