22 Mar Commercial Flood Insurance
Do You Need Flood Insurance for Your Business?
Many people do not realize that floods, and other natural disasters, are often excluded on their property and liability insurance policies. With that said, it is important to recognize why flood insurance is such an important coverage. The National Flood Insurance Program estimates that at least 25 percent of businesses that close after events, like a flood, never reopen. This is important figure because these business closures can be easily avoided by purchasing a commercial flood insurance policy.
Commercial Flood Insurance – The Flood Zones
Before you rush to get a flood insurance quote, you should check to see if your business is located in a flood zone. These flood zones are established by the Federal Emergency Management Agency, or FEMA. Check on FEMA’s website, www.fema.gov to see if you are in a flood zone before making any financial decisions. These zones do not guarantee whether or not you will be at risk for flooding, but it will help you in your decision-making process.
Commercial Flood Insurance – Flood Insurance Options
Up until recently, the only program you could purchase Flood Insurance from was the National Flood Insurance Program, otherwise known as the NFIP. The NFIP is a government sponsored Flood Insurance program that has some hefty requirements associated with it. For example, with the NFIP, you are required to obtain an elevation certificate, which can be costly and time consuming. Recently, private insurance carriers have gotten involved with Flood Insurance which has made obtaining Flood Insurance easier and more affordable. One program specifically, the National Catastrophe Insurance Program does not require elevation certificates and on average is less expensive than the NFIP policies. In addition to no elevation certificates, the National Catastrophe Insurance Program has a shorter waiting period, broader definition of flood, and has higher coverage limits available for purchase.
Would you like to learn more about your Flood Insurance options? Give us a call! Our Flood Insurance specialists are available to answer all of your questions.
You can reach us at 925-297-4829.
All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.