The risk of flooding to your building may be far greater than you think. Flood maps are outdated, conditions that increase flood damage may now exist, and government flood insurance is rising in price.
Additionally, many companies are underinsured for flood damage and, hence, are ill-prepared to survive a business closure resulting from flooding.
You may have heard of the National Flood Insurance Program (NFIP). It is a government-sponsored program that provides moderate coverage for flood damage. Policy limits available from NFIP business flood insurance are $500,000 per building and $500,000 for business contents. These amounts may fall short, however, and they don’t cover some essential losses, like business income. Your company might be better served by the private market.
Today, many insurers offer flood insurance that offers protection from business interruption as well as coverage for extra expenses, such as cleanup or renting new equipment or a new space while yours is rectified.
Talk to your agent or broker about your flood protection options and make sure you are not left underwater by a flood event.