Commercial Flood Insurance
About Commercial Flood Insurance
Commercial Flood Insurance protects one of your biggest investments–your business–from damage caused by rising water. Floods often strike without warning‐destroying buildings, equipment, and inventory. If that doesn’t sound serious, you should know:
- Most business policies do not cover flooding.
- One in four businesses that shut down from a natural disaster never reopens.
- 90% of all natural disasters involve flooding.
- The most common form of federal disaster assistance is an interest-bearing loan.
Bankers is a Write Your Own (WYO) authorized carrier for the National Flood Insurance Program (NFIP).
Flood Elevation Certificates
A Flood Elevation Certificate is an important tool of the National Flood Insurance Program (NFIP) used to certify building elevations in Special Flood Hazard Areas. The Certificate is used to help determine proper flood insurance premium rates and as supporting documentation for flood map revision requests. Elevation Certificates are completed by a licensed land surveyor, engineer, architect or designee of the State.
Primary Flood Insurance Coverages
Basic building coverage pays up to $500,000 to repair or replace the insured building and its foundation, electrical and plumbing systems, central air conditioning, furnaces and water heaters, and installed improvements. Even if you lease, you should still consider purchasing flood insurance to cover any improvements you have made to your location. For more information, contact your Bankers Agent or visit floodsmart.gov.*
On a commercial flood policy, contents coverage pays for damage to inventory, merchandise, machinery, and other contents up to $500,000.
Commercial Excess Flood Insurance
Like the Standard Flood Insurance policy, Excess Flood Insurance provides protection against damage caused by rising water. This coverage is over and above your Standard Flood Insurance Policy, extending your limits beyond the $500,000 available in the base policy. In order to be eligible to buy an Excess Flood Insurance policy, there are two conditions that must be met:
- Your Standard Flood Insurance policy must be provided by the National Flood Insurance Program (NFIP) or a company that is a Write Your Own (WYO) carrier.
- Your property must be insured for the maximum limits available from the NFIP/WYO.
Building coverage is available up to $1,000,000. Optional Contents coverage is available up to $100,000. All limits are in excess of the primary NFIP/WYO flood policy.
Primary Commercial Flood Insurance Coverages
An Excess Flood policy provides coverage for a single building. Eligible types of property include:
- Buildings that are considered “other residential” (contain more than four units)
- Non‐residential condominium buildings (e.g., condominium office buildings)
- Secondary other structures (must also be separately insured on individual policies)
Contents coverage is optional. Itemized or scheduled property coverage is not available. Non‐household contents, (i.e., business contents), can be insured if they are in a residential building, but Bankers must also write the residential building under the Dwelling Form to qualify.
The Excess Flood policy term is 12 months; however, expiration dates for the Standard and Excess Flood policies must be coordinated.
The Excess Flood policy has no deductible. However, the limits of your Standard Flood Insurance policy must be paid before your Excess policy coverage will begin. This means that the damage to your property must be greater than the maximum coverage allowed by the NFIP in order for the Excess Flood policy to come into play.
Ready to Speak to an Agent?
Insurance is complex and you need professional advice you can trust. We partner with top-quality independent agents who can help guide you through the purchasing process. There are many things you should be asking your agent prior to purchasing insurance for your home or business.
First, be prepared before you visit your agent. Do an inventory of your home or business. You may be surprised how much you really have. Visit fema.org.*
Below are a few of the types of questions your agent can answer:
- Does my lender require flood insurance? Am I in a special flood hazard zone? (Everyone is in a flood zone!)
- How much flood coverage do I need?
- What is Umbrella Insurance and is it just for the wealthy?
- Do I need special coverage for an in-home office?
- I collect antiques and jewelry. How do I get this covered?
- Do I need employment practices liability lnsurance and what does it cover?
- Is my company required to maintain workers compensation coverage?
- What will happen if I cannot operate my business?
- I conduct business out of state. Is my electronic information protected?
- What is identity theft and is there a way to protect myself from it?