Commercial Flood Insurance Coverage

Commercial flood insurance helps protect your business from flood damage. This type of commercial insurance can help protect your business’ physical location and the contents inside. You may need to get this insurance as a separate policy because flood coverage is not usually a part of a commercial property insurance policy.

We provide our flood insurance through the federal government’s National Flood Insurance Program (NFIP), managed by the Federal Emergency Management Agency (FEMA). Congress established the NFIP in 1968 to protect property owners from suffering financial losses due to flooding.

What Does Commercial Flood Insurance Cover?

If your business or property gets damaged from floodwater, commercial flood insurance can help cover your repair costs. This chart shows you what’s included in a flood insurance policy’s building and contents coverage. 1

• Electrical and plumbing systems
• Furnaces and water heaters
• Appliances
• Permanently installed carpeting
• Permanently installed cabinets, paneling and bookcases
• Windows
• Foundation walls, staircases and anchorage systems
• Detached garages
• Fuel tanks, well tanks and pumps
• Solar equipment

• Personal property, such as clothing or furniture
• Curtains
• Portable and window air conditioners
• Carpets not included in building coverage, such as carpeting installed over wood floors
• Currency, precious metals and valuable items

What Is Not Covered by Flood Insurance?

Be aware that the cause of a flood plays a role in coverage. The NFIP defines a flood to be an excess of water on land that’s normally dry and either affects:

• At least two acres of land
• Two or more properties

If your business property gets damaged by a sump pump backup that wasn’t caused by flooding, your commercial flood insurance policy won’t cover the claim.

Commercial flood insurance also doesn’t cover every kind of property damage claim. In fact, this insurance policy doesn’t cover business property outside of your building or: 2

• Financial losses from business interruption
• Cars used for your business
• Valuable papers

Do I Need Commercial Flood Insurance?

Most commercial property insurance policies don’t cover flood damage. So, you may want to buy commercial flood insurance to help protect your business and personal property. Even if your business isn’t in an area prone to flooding, you’ll want commercial flood insurance if:

• You run your business in an area that has cold, snowy winters and warm springs. Fast-melting snow is one of the top causes for commercial flooding.
• You experience moderate rainfall in the spring. A nearby stream overflows from the rainfall, flowing into your place of business and causes flood damage.
• Your business’ basement floods from construction runoff next to your building and damages equipment and inventory.

Additional Reasons to Consider Flood Insurance

Although you may think you don’t need insurance because your area isn’t at risk of flooding, floods are one of the most common and expensive natural disasters that can affect every region and state. Other reasons you may want to consider commercial flood insurance:

• Over 20% of flood claims come from properties outside high-risk flood zones. 3
• Wildfires can change the landscape and ground conditions in your area, so future rainfall can cause flash flooding.
• Storms aren’t the sole cause of flooding. A broken dam or levee or new building development that changes the flow of water in your area are just a few ways that can trigger a flood.

How Does NFIP Flood Insurance Work?

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When you buy flood insurance, there’s a 30-day waiting period before your policy goes into effect. So, if a flood damages your business and you’re within the waiting period, you won’t have coverage. That’s why it’s important to purchase flood insurance well before a potential flood heads your way.

If your business sustains flood damage and your waiting period is over, you can file a claim for coverage.

Common Questions About Commercial Flood Insurance

Do Commercial Loans Require Flood Insurance?

If a business is in a high-risk flood zone, a mortgage lender will likely require a business owner to get flood coverage before you can get a commercial loan.

What Is the Maximum Coverage for Flood Insurance?

The maximum coverage for flood insurance is $500,000 for both building and personal property. 4 Your policy will state your business’ specific:

• Coverage limits
• Deductibles
• Insurance premiums

Get a Quote for The Hartford Flood Insurance

We understand you may have questions about federal flood insurance coverage. Our specialists are here to answer them. To learn more about coverage, contact your local insurance agent or call 800-296-7542. We’re here for you every step of the way. Whether you need to get a quote or help filing a claim, we’ve got your back.

More Information

4 Federal Emergency Management Agency, “National Flood Insurance Program: Summary of Coverage for Commercial Property”

The Hartford is a participant in the federal Write Your Own (WYO) Program, part of the Federal Emergency Management Agency (FEMA), National Flood Insurance Program. WYO flood policies are underwritten by the federal government and issued, sold, and administered by authorized private insurance companies, including Hartford Fire Insurance Company, Hartford Insurance Company of the Midwest and Hartford Underwriters Insurance Company. Accordingly, Hartford WYO flood policies are written subject to the rules, regulations, terms, conditions, and availability of the National Flood Insurance Program. All policies must be examined carefully to determine suitability for your needs and to identify any exclusions, limitations or any other terms and conditions that may specifically affect coverage. In the event of a conflict, the terms and conditions of the policy prevail.