Many business owners have commercial property insurance to help offset the costs of repairing or replacing their property in the event of a covered claim. But did you know that flood damage typically isn’t covered by standard commercial property insurance?
Floods are the most common and costly natural disaster in the United States, and they can happen in every state and region. And while you might think your commercial property is safe because it’s not in a high-risk flood zone, that’s not always the case. According to Neptune Flood, 25% of flood losses happen in areas where flood insurance isn’t required by lenders.
Flood insurance is designed to protect both your building and what’s inside it. It can also cover business interruption, including lost income and ongoing operating expenses if flooding forces you to close. Depending on your situation, having a customized insurance policy in place can make the difference between getting back to business quickly or taking more time to recover.
When it comes to protecting your business, our advisors can help you explore two flood insurance options:
National Flood Insurance Program (NFIP) via The Hartford*
- Provides up to $500,000 for businesses and $1 million for its contents
- 30-day waiting period
- Provides up to $4 million for business and $1 million for its contents
- 10-day waiting period
NFIP is a federally subsidized program managed by FEMA. However, private flood insurance providers, such as Neptune Flood, offer higher coverage limits and additional benefits. Unlike NFIP, private flood insurance remains available even during government shutdowns, with waiting periods as short as 10 days.
At South Carolina Federal Insurance Solutions, we believe flood insurance is a business owner’s best protection against the financial losses of a flood. Let us help you find coverage options that fit your unique situation.
Whether you already have commercial flood insurance or are exploring it for the first time, it is important to review your coverage limits, exclusions, and applicable deductibles. To help you avoid costly surprises down the road, it’s wise to make sure your policy matches your risk level.
Schedule a complimentary insurance review today with one of our advisors and we’ll help you protect your business, employees, and peace of mind.
*The Hartford offers flood insurance through NFIP, which is a government-backed program administered by FEMA. Due to the lapse in federal funding, NFIP applications may not be processed or responded to until after appropriations are enacted.
**Neptune Flood is a private insurer backed by LLoyd’s of London.
