Commercial flood insurance is essential to protect your business from damaging floodwaters, especially since most business property insurance policies don’t cover it. Even if your business is in an area that normally does not or never has flooded, you should consider carrying flood insurance if you may experience moderate to high rainfall or your operation is located in an office complex.
Since more than 90 percent of all natural disasters involve flooding, you’ll want the peace of mind that commercial flood protection affords. The First Baldwin Insurance team is well-versed in the flood risks your business may face and in the solutions to help mitigate them.
A commercial flood insurance policy protects your business location, physical contents and assets. It also covers any floodwater damage to floors, walls, ceilings, equipment, fixtures, furniture, inventory and business property.
Commercial flood insurance is provided through the National Flood Insurance Program (NFIP) and managed by the Federal Emergency Management Agency (FEMA). Commercial buildings in a moderate- to low-risk area may qualify for coverage at a preferred rate. This option can combine both property and contents protection in one lower rate. For business in a high-risk zone, only a standard rated policy is available, and property and contents coverage must be purchased separately.
Flood insurance premiums take into account and are set by the following factors:
- Year of building construction
- Building occupancy
- Number of floors
- Location of contents
- Its flood risk or flood zone
Typically, a 30-day waiting period is required before new flood insurance policies become effective, so it’s best to be prepared before disaster strikes.