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Fire & Water - Cleanup & Restoration

Commercial Flood Questions

9/7/2017 (Permalink)

What are the real risks to my business?

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 reopen.
  • Ninety percent of all natural disasters involve flooding.
  • The most common form of federal disaster assistance is an interest-bearing loan.

How much coverage can I get?

Whether your business is large or small…whether you own or lease facilities…commercial flood insurance offers protection for your business - inside and out.

Commercial Contents Coverage:
Covers inventory, merchandise, machinery, and other contents up to $500,000

Commercial Building Coverage:
Covers buildings up to $500,000. Even if you don't own the building, you can insure the value of improvements you've made.

What if I need more coverage?

An Excess Flood policy from Bankers can increase the coverage limits of your business flood policy by:

  • an additional $500,000 for building coverage
  • an additional $100,000 for contents coverage

Learn more in Bankers Excess Flood section.

Who gets government aid?

Government aid is available only if the President makes an official disaster declaration (less than half of all flooding qualifies). Most often, federal disaster aid comes in the form of an interest-bearing loan. When grants are awarded, the average amount is less than $2,500. Less than half of flooding events are declared disasters, and insurance is often the sole source of assistance for victims.

Is flooding really a serious problem?

The odds may seem like a million to one you'll ever experience serious flooding. But it happens more than you'd think. In fact, 90% of all presidentially-declared disasters involve flooding.

Even minor flooding can mean major financial difficulties. Imagine just a few inches of floodwater invading your home. That's more than enough to destroy floors, damage walls, and ruin appliances - costing you thousands (more on that later).

What flood zone am I in?

Below are three major categories of flood zones. To get the specifics on what flood zone you live in, find an agent or contact us.

A Zones are usually located near a river, lake or stream - making them the second highest risk zone. Average premium is around $557 annually.

V Zones are usually located near the ocean. This makes them particularly vulnerable to storm surges (flooding caused by hurricanes). V Zones represent the areas at highest risk, and premiums in this zone are the most expensive. Average premium is around $1,000 annually.

B, C, X, and A99 Zones are less prone to flooding. Depending on your area, you may qualify for a Preferred Risk Policy and pay as little as $119 per year. Remember that almost 25% of all flood claims come from these "low-risk" zones.

Is there a waiting period for business policies?

Yes. There's a mandatory 30-day waiting period on new flood policies, so time is of the essence.

Do I need a Business Continuity Plan in case disaster strikes?

Most definitely. That's why we've put a plan together for you. From pre-storm preparation…to claim information…to tips on cleanup…we'll walk you through the steps that lead to the least inconvenience and the fastest recovery.


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