![]() If I purchase A Business/Commercial Flood Insurance Policy Today, When Is It Effective? Deductible, as the higher the deductible, the lower your premium.The location of the lowest floor of your building in relation to the elevation requirement on the flood map.Your company’s location within the building, as a company located on a higher floor may see lower premiums.Location of property and associated level of flood zone risk.Premiums are based on a variety of factors, including: Actual Cash Value is the cost to replace an insured item of property at the time of loss, less the value of its physical depreciation What Is the Cost of Flood Insurance for my Business/Commercial Concern?Ĭommercial flood insurance premiums can range from a few hundred dollars a year to thousands of dollars annually. The value of flood damage for a business is typically based on Actual Cash Value for losses to the insured building and its insured personal property including stock and inventory. How Are Business/Commercial Flood Damages Valued? To find a local insurance professional who is familiar with the National Flood Insurance Program, contact the NFIP at 1-88 for an agent referral or through the NFIP Insurance Provider Locator. However, NFIP coverage can only be purchased through an insurance professional you cannot buy it directly from the federal government. Municipalities for city buildings and propertyįlood insurance is available from the NFIP and some private insurers.If you have a mortgage from a federally regulated or insured lender you may be required to obtain flood coverage. Many business owners, particularly those in high-risk flood areas, may be required to have flood insurance. However, if you own a business inside or outside of the high-risk flood area, you own a building or lease and office, you should consider purchasing flood insurance for the protection and peace of mind it brings. Damage from flooding, including flooding generated by hurricane-generated storm surge, typically is not covered under a standard commercial policy, including a Commercial Package Policy (CPP) or a Business Owners Policy (BOP) Is Flood Insurance REQUIRED for my business?įlood Insurance is not a requirement. New urban development which changes natural runoff patterns and reduces the ability of the land to drain properlyĭoes My Business/Commercial Property Insurance Include Coverage for Flooding?.Blocked storm drains, which may cause a flood even with moderate rainfall.Fast melting snow, which can cause floods when the ground is frozen and unable to absorb water. ![]() Mudslides due to heavy rain on hills or mountainsides.Some of the common causes of flood include: Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined aboveįloods can have a variety of causes, and floods can occur even in areas that don’t typically flood.Other earth movements such as landslide, slope failure, or a saturated soil mass moving by liquidity down a slope, are not mudflows.” Mudflow, which is defined as “A river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water.Unusual and rapid accumulation or runoff of surface waters from any source.The NFIP has a technical definition of a flood, which is as follows:Ī general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from any of the following: What is the definition of a flood?Ī simple definition of a flood is an accumulation of water on normally dry land. You may be able to obtain flood coverage through private carriers. The licensed insurance carrier must follow all guidelines of the NFIP relating to all coverage, underwriting, premiums, and claims. The NFIP offers two types of coverage – building coverage and business property coverage – to protect your business structure and belongings. However, the policies fall within the jurisdiction of the National Flood Insurance Program. You would need a commercial flood policy to protect your business against flooding.Ĭommercial flood policies are issued by the National Flood Insurance Program ( NFIP) either directly or through licensed insurance agents in the District of Columbia. While damage caused by some types of natural events-such as lightning or wind-will usually be covered by commercial property insurance, you need a special policy if you want protection from flood damage. Natural disasters can be devastating to businesses.
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