NFIP: What Gets Covered

        What You Should Know About Flood Insurance


There are two types of commercial building flood insurance coverage, and you can opt to buy one or both.

     • Commercial Contents covers inventory, merchandise, machinery and
     any other contents your business has up to $500,000.

     • Commercial Building covers you company’s building up to $500,000.
     Even if your company does not own the building, you are
     able to insure the value of the improvements you made to the space.

If the value of your business is more than $500,000 in either of these areas, you can purchase an excess flood policy to provide total coverage up to $1 million. In addition to these two types of building coverage, the NFIP will also keep you covered for flood protection, prevention and cleanup. Sandbagging is the most common and effective way to prevent flood damage to your business, and with your policy, you will get reimbursed for the costs associated with taking part in this defensive measure. Another important aspect that would be covered in your policy is cleanup. Any work needed to clean and remove debris will be reimbursed under your NFIP coverage.

Flooding is a risk to any business, whether you are inland or near the coastline. In fact, one in four businesses that shuts down from a natural disaster never reopens, and more than 80 percent of all presidentially declared natural disasters involve flooding. According to the U.S. government, the average commercial flood claim in the past 10 years has been around $33,000, and property damage due to flooding usually adds up to more than $6 billion annually.