When you pour your energy, time, and heart into your business, don’t let anything take it down. There are a number of ways to block your market competition, but having the right protection, although not as exciting as marketing, is necessary to defend your asset. In this article, we’ll explore the importance of obtaining commercial flood insurance, as well as various ways to control the cost of insuring your commercial building against floods.
The first step to take is to review the coverage of your property insurance for flood coverage. However, don’t be taken aback if you don’t find this type of coverage in your policy, as most of them do not include “flooding” as a risk they would cover. Property insurance companies are smart; they know that the risk of flooding is statistically higher than any other risk they cover. Flooding can occur even in low or moderate-risk zones, and 20% of all flooding events in the country affect such areas. It is our nation’s top disaster, catastrophic and affects multiple properties at once, yet there is little you can do to prevent it if Mother Nature decides to open the sky. If you own a mortgaged property, you must purchase a commercial flood insurance policy. After many years of loan ownership, you are familiar with the cost of a commercial flood insurance policy, and perhaps it’s time to shop for a private option. We can help you with that.
For over a decade, the National Flood Insurance Program (NFIP) has singularly dominated the flood insurance market. In fact, well-known insurance companies, such as Nationwide, State Farm, and Progressive, operate under a federal program called the WYO. This allows these companies to resell the NFIP, or government option, at zero financial risk.
Congress initiated the National Flood Insurance Program (NFIP) in 1968, aiding flood-prone area residents where private insurers couldn’t affordably step in. Regrettably, nationalization of the program enabled construction of buildings in even the most flood-prone areas, offering a safety net for those properties through government bailout. As per FEMA records, the NFIP’s total claims-paying capacity was just $14.66 billion in Jan. 2018, of which $9.9 billion represents borrowing authority.
We’re particularly enthusiastic about the progress commercial flood insurance has made within private companies. It’s becoming an increasingly appealing alternative to NFIP coverage, especially since commercial property owners are seeing major savings. The administration of certain commercial flood insurance options is also being simplified, making it easier to opt for a standalone policy.
On a commercial flood policy, contents coverage pays for damage to inventory, merchandise, machinery, and other contents up to $500,000.
Although available for years, the private market flood insurance option has been limited to commercial excess coverage. This excess coverage was intended to supplement NFIP’s commercial coverage cap for risks beyond acceptable limits.
As specialists in flood insurance, we offer multiple options to cover your commercial property. We guarantee to shop many options available to you based on your risk assessment. Our top priority is to provide the good protection plan for your assets and ensure you meet loan requirements while giving you peace of mind. As a business owner, you’re not only responsible for yourself but for your clients, employees, and community. Don’t overlook the importance of getting proper flood insurance coverage to safeguard your legacy and provide for your family.