Flood insurance is a type of coverage many people do not think about when they are buying insurance. However, floods are the most common type of natural disaster, and most homeowner policies do not provide flood coverage. If you live or own a business in a flood zone, whether high-risk or low-risk, it’s important to buy flood insurance from a flood insurance company.
Flood Insurance for Businesses
Flood insurance is generally purchased through the National Flood Insurance Program (NFIP). This program is managed by the Federal Emergency Management Agency (FEMA). Policies are available for both homes and businesses and can be structured to cover the building, the contents, or both.
Does My Business Need Flood Insurance?
Flood damage isn’t covered under regular business or home insurance coverage. Given our increased risk related to climate change, extreme weather events, and sea-level rise, flood insurance coverage is more important now than ever before.
Most new flood insurance policies have a 30-day waiting period before coverage begins, so it’s best to plan ahead when purchasing flood insurance for your residential or commercial property, especially with hurricane season right around the corner.
I thought I wasn’t in a flood zone?
Just like zip codes and telephone area codes, everyone is in a flood zone. In the case of flood zones, your zone is an indication of how likely you are to experience a flood event. Some flood zones are much higher risk than others. If you’re in a high-risk zone, your bank or mortgage lender might require you to purchase flood insurance coverage as a condition of your loan.
According to FEMA, low-risk isn’t the same as no risk. One in four flood insurance claims is from properties outside of high-risk zones.
What Does Flood Insurance Cost?
Commercial flood insurance rates are based on your geographic location, the type of building, physical elevation related to expected flood levels, and flood zone. Most customers outside high-risk flood zones (who aren’t being forced to purchase flood insurance by their bank) will qualify for the Preferred Risk Program (PRP) and get special low rates.
What Does Flood Insurance Cover?
Coverage applies to your building and/or contents (depending on what you need and purchase) damaged directly by flooding. FEMA defines flooding as “an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties“. Water damage from a broken pipe, for example, would fall under your “regular” property insurance policy.
Things to Remember
- Regular business and home liability insurance policies don’t cover flood claims.
- It’s best to plan ahead. Most new flood policies have a 30-day waiting period before coverage begins.
- Most customers outside of high-risk areas will qualify for the Preferred Risk Program (PRP) … and get special low rates.
Contact Marine Agency Today
Looking for the best commercial flood insurance? Our flood insurance agents are at your service. Reach out to us today to find out more about how we can help you obtain the proper insurance. Marine Agency is an insurance agency that offers tattoo, spa, laser, flood, homeowners insurance, and more. You can reach us by dialing 800-763-4775 or by sending a message to our email info@marineagency.com.
