Buy Commercial Flood Insurance

Commercial flood insurance is a type of insurance policy designed specifically to protect businesses and commercial properties from financial losses due to flood damage. This type of insurance provides coverage for damage to a commercial building, its contents, and any equipment or machinery within the building.

Commercial flood insurance policies typically include coverage for direct physical losses caused by floods, including water damage, as well as loss of business income and additional expenses incurred during the recovery process.

This type of insurance is typically purchased by business owners who operate in areas that are prone to flooding or are considered to have a high risk of flooding.

The average price of a standard Commercial Flood Insurance Insurance policy for small businesses ranges from $67 to $99 per month based on location, flood zone, square footage, construction type and more.

Flood insurance is mostly provided by the federal government through the National Flood Insurance Program (NFIP). The insurance policy by the NFIP will cover all types of floods including flash flooding, storm surges, mudslides or snowmelt.

NFIP is provided by insurance professionals on behalf of the federal government. Apart from the NFIP, there are private insurers who offer coverage against loss occasioned by floods. Therefore, you can look into both options then get to determine which insurance provider will meet the needs of your business.

FEMA usually requires a 30-day waiting period for new business flood insurance policies. That means it's important to buy a commercial flood policy before a possible flood event is headed in your direction.

Generally commercial flood insurance covers damage to your building and contents caused by flood. This includes losses resulting from water from over flowing rivers or streams, rain, storm surge, snow melt, blocked storm drainage systems, broken dams or other like causes. To be considered a flood, waters must cover at least two acres or flood at least two properties.

Both the building and its contents can be covered for up to $500,000 For primary coverage on buildings, the coverage would includes repairing or replacing things such as a damaged air conditioning, water heaters or electric systems. On the other hand, the contents in the building that will be replaced include machines on the property, inventory, and also merchandise.

Beyond knowing what your insurance will cover, it is also necessary to know what is not covered by your commercial flood insurance policy. Most of flood insurance does not cover the loss of property outside your building. To add on that, if you take an insurance coverage provided by the NFIP, they do not offer Business Interruption coverage. This means that the insurance will not compensate you for the income losses suffered when the business was closed down.

The good news is there are private insurers who provide Business Interruption coverage. Also, one can opt to purchase the excess commercial flood coverage. This coverage includes compensating the business for the time period which they did not operate.

Commercial flood insurance can be purchased by anyone who has a business in a commercial location. In some instances, business flood insurance is mandatory. Some businesses are located in high-risk areas or have a mortgage which is federally regulated by an insured lender must have flood insurance.

You find out if your business is in a high-risk area by looking at the FEMA Flood Map Service Center Flood Map. Use this link to find your official flood map, access a range of other flood hazard products, and take advantage of tools for better understanding flood risk.

The map highlights places which are more prone to experience floods. This helps businesses tell if they need to get a commercial flood insurance policy and which type of coverage they should get.

Here are some of the common acronyms used in the National Flood Insurance Program:

Here are a few examples of commercial flood insurance claims and how insurance can help pay for the losses:

A restaurant owner experiences flooding due to heavy rain and the rising of nearby rivers or lakes. The flood causes damage to the building structure, furniture, equipment, and inventory. With commercial flood insurance, the owner can file a claim to cover the costs of repairs and replacement of damaged property, including lost income due to the closure of the business during repairs.

A small business owner operates a retail store located in a flood-prone area. During a severe storm, floodwater damages the store's merchandise, furniture, and fixtures. The business owner can file a commercial flood insurance claim to cover the cost of repairs and replacements.

A manufacturer experiences flooding in their warehouse due to a nearby river overflowing its banks. The flood damages the machinery and raw materials, causing significant business interruption. With commercial flood insurance, the manufacturer can file a claim to cover the cost of repairs or replacement of damaged machinery and raw materials.

In each of these examples, commercial flood insurance can help business owners recover from the financial losses caused by flooding. The insurance policy can cover the cost of repairs or replacement of damaged property. Without commercial flood insurance, business owners may face significant financial hardship and potentially even bankruptcy due to the costs of repairing damage caused by flooding.