The National Flood Insurance Program (NFIP) is one of the most common flood insurance programs offered by the Federal government. These NFIO insurance policies are designed to cover all types of flooding including:
- Flash floods
- Storm surges
- Major snowmelt events
When Catastrophes Happen
Regardless of scale or sector, your business represents a major investment in your time and money. So, you want to protect it from all threats inside and out.
One of the most damaging things that can happen to any structure is flooding. Yet most commercial insurance policies do not specifically have flood coverage written directly into the policy unless the property is in a known flood zone.
Unfortunately, increasing severe weather and water infrastructure failures are on the rise across the United States. This leaves some business and commercial properties at high exposure risk to flooding, and the enormous out-of-pocket expenses that can arise from even the smallest flooding event.
NFIP is provided and administered by insurance providers on behalf of the federal government. Though NFIP is not the only option in the flood insurance marketplace. Some private insurers offer coverage plans for floods against loss caused by floods. Having the right company on your side like Healy Brokerage will go a long way toward assessing the type of flood insurance.
It’s also important to note that FEMA typically requires a 30-day waiting period for new business flood insurance policies. With that in mind, it’s a good idea to have your commercial flood policy in place long before a possible flood event is headed in your direction.
Typical Flood Coverage
What Does Business Flood Insurance Cover?
Most commercial flood insurance policies cover flood damage that is specifically caused to a building and the contents. This includes this like:
- Overflowing rivers or streams
- Water damage caused by heavy rain
- Storm surge damage
- Significant snowmelt
- Water damage from blocked storm drainage systems
- A broken dams levees or containment berms
Though to technically be considered a flood, the resulting waters must cover at least two acres or flood water affects at least two properties.
How Much Coverage Is Included?
With most commercial flood insurance policies, both the building and its contents can be covered for up to $500,000. When it comes to primary coverage on buildings, the coverage will typically include repairs or replacing things like damaged air conditioning, water heaters, or electric systems. Though the contents in the building that will be replaced include machines on the property, inventory, and also merchandise.
How Much Does Commercial Flood Insurance Cost?
The average range for commercial flood insurance falls in a window between $60 to $100 a month. Though it’s important to note that commercial flood insurance premiums are established based on the risk exposure to flood. This means areas that are in a known flood zone or an area that has experienced significant flooding in the past, are more likely to have higher premium costs. This is then compounded by the type of building, the value of the contents, and your preferred level of coverage.
Having an industry leader like Healy Brokerage on your side is essential for determining the level of coverage your business needs and what things you want to include in the rider.
What Isn’t Covered By A Commercial Flood Insurance Policy?
The majority of flood insurance policies do not cover the loss of property outside the building. Additionally, coverage provided by the NFIP does not offer Business Interruption coverage. This means that the insurance will not compensate you for the income losses you occur while you are out of business due to the flooding incident.
Though there are inexpensive “Business Interruption” policies that can help cover these losses and can easily be added to other forms of commercial insurance policies.