Natural disasters come unexpectedly and can be devastating for any business. Do you know? The average commercial flood claim, according to FEMA is  $90,000. The damage caused by natural calamities like lightning or wind can be covered under the commercial property insurance. But you need a separate policy for protection against flood damage.

Dry Effect Flood

Flood claims are valuable because it is costly to clean and repair a water-damaged property especially if the property is contaminated. Without legitimate flood insurance, your business will need to pay these costs on its own.

So, it’s a better safe than sorry scenario. According to a recent report from FEMA, 40% of small businesses damaged by floods never reopened due to the high restoration costs without insurance.

Here’s everything that businesses need to know about commercial flood insurance:


What is Commercial Flood Insurance and What’s Accessible?

Commercial flood insurance protects business owners from any damage caused by floods to their business properties. There are various government programs for the same or you can even buy it form the business agent or an insurance company that engages in the National Flood Insurance Program.

Business owners can assess their flood risks and then opt for the insurance accordingly. However, it is mandatory for businesses that are situated in a flood-prone area.

To qualify for government funding, remember that your business must be located in a community participating in the National Flood Insurance Program. You can look up for location here. It typically takes 30 days to start the new policies.


Some Frequently Asked Questions:


Should I consider flood insurance if my business is located in Flood Zone V or A?


It is vital to get a flood insurance for your business if the property is located in high hazard area (Flood Zone V or A.) Properties situated in Zone V ( a coastal area) has a high risk of damage from both flooding and storm surge whereas properties in Zone A (near bodies of water) also have a tremendous risk of damage from flood but not from the storm surge. So, you do not need a second thought to buy a commercial flood insurance.


Should I consider flood insurance if my business is located in moderate or low-risk area?


If your business is located in Zone X on newer maps and Zone B or C on older maps (moderate or low-risk zone), consider the following points:

  1. You will not get any disaster assistance from FEMA if your business property is not insured.
  2. You cannot rely on the fact that the current map does not designate your area as flood prone, so you are safe. Sue to changes in climate changes these days, nothing is predictable.
  3. Flood Insurance are low for business properties located outside high-risk zones. So, if you buy a flood policy and later your area is indicated as a flood zone, your total cost will be based on your previous zone.


What does flood insurance cover?


The flood insurance covers any damage caused by water on your office premises. It includes any loss from heavy or prolonged rain, storm surge, water overflowing rivers or streams, snow melt, broken dams or levees, blocked storm drainage systems, or other similar causes.  To be considered a flood, the water affect two properties or must cover at least two acres.


Is Flood Damage Included in General Property Form?


The general property form includes the direct damage only. No loss of income or extra expenses is covered in this general property form.


The Approximate Cost for Flood Damage Insurance:


The cost of flood damage insurance depends upon multiple factors. Check the following them below:


  1. Your Office’s Location (Zone Designation)
  2. Your Office Building’s Occupancy (How It Is Used)
  3. The Date of Your Office Building’s Construction.
  4. The Number of Floors in your Office Building
  5. The Location of the Lowest Floor Relative to the Base Flood Elevation
  6. Whether your Community is Eligible for a Premium Discount
  7. The Limits and Deductible you Decide
  8. If you are Eligible for a Grandfathered Zone


The maximum limit that you are allowed is $500,000. If in case you need higher limits, you can purchase excess insurance or can buy a Difference in Conditions (DIC) policy.


If you are looking for professional help for any kind of damage due to floods or water restoration, Dry Effect can assist you with the same.

About Lisa McIntyre

Lisa McIntyre has always resided in the Greater Cincinnati and Northern Kentucky. She graduated from University of Cincinnati with a degree in Applied Science. Ultimately, her passion for science and teaching came to fruition after her husband requested her assistance in developing Dry Effect Restoration Services. She was able to develop her knowledge, degrees and certifications further in many indoor air quality associations and organizations. Thus allowing her to educate Realtors and Insurance Agents on the damages that many common indoor air quality irritants and water bacterial growths can lead to in ones home or business. Over 10 years later she’s glad to have taken the leap of faith to assist her husband what seemed to be a fun project into a lifetime achievement and to see the individuals she teaches prosper from their newly found knowledge.

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