Downtown Portland, Oreogn

Commercial Flood Insurance

While your Business Property Insurance protects the value of your building and equipment against damage from most natural disasters, it will not cover losses from flooding, the most common natural disaster in the United States.

Do you need Commercial Flood Insurance? 

Purchasing commercial flood insurance is the only way to protect your business investments against water damage from multiple flood sources, including surface flooding, including a river flowing over its banks, storm surges, and local drainage problems.

The primary coverage’s offered through Commercial Flood Insurance include:

Basic building coverage through the National Flood Insurance Program pays up to $500,000 to repair or replace the insured building and its foundation, electrical and plumbing systems, central air conditioning, furnaces and water heaters, and other installed improvements permanently attached to the structure. Even if you lease, you should still consider purchasing flood insurance to cover any improvements you have made to your location.
On a commercial flood policy, contents coverage pays for damage to inventory, merchandise, machinery, and other contents up to $500,000.

Excess Flood Insurance

When a standard Commercial Flood Insurance policy isn’t enough, you can consider excess flood insurance that will extend your limits beyond the $500,000 available in the base policy. In order to be eligible to buy an Excess Flood policy, two conditions that must be met:

 Your Standard Flood Insurance policy must be provided by the National Flood Insurance Program (NFIP) or a company that is a Write Your Own (WYO) carrier.

 Your property must be insured for the maximum limits available from the NFIP/WYO.

 Flood Insurance Facts:

According to the Federal Emergency Management Agency (FEMA) at least 25 percent of businesses that close after events, like a flood, never reopen.

 A Commercial Flood Insurance policy compensates business owners for all covered losses, and unlike a Federal disaster loan, it does not have to be repaid.

Business owners who lease their space can purchase contents-only coverage.

 If your business is in a moderate- to low-risk area, you may be able to obtain the lower-cost Preferred Risk Policy.

 In most cases, it takes 30 days after purchase for a policy to take effect, so it’s important to buy insurance before the storm approaches and the floodwaters start to rise.

 Excess Flood Insurance may be available.

Reach out to me if you’re considering Commercial Flood Insurance. I will discuss with you how it works and assess if it fits into your risk management needs. If you determine this coverage is needed I will then provide you with comparative Commercial Flood Insurance quotes from multiple insurance carriers so you can get the best possible rate.

As an insurance broker I help businesses throughout Oregon and the Pacific Northwest manage risk.