Damage caused by flood is not usually covered on a commercial property insurance policy. Flood insurance is normally available through the National Flood Insurance Program (NFIP) at the maximum limit of $500,000 for a commercial building and $500,000 for contents.

Anyone can be financially vulnerable to floods. People outside of high-risk flood areas file over 20% of flood claims and receive one-third of disaster assistance for flooding. When it is available, disaster assistance is typically a loan that you must repay with interest.

Your business is either in a high-risk or moderate-to-low risk area, and the flood rate will vary accordingly.


Most commercial buildings in a moderate-to-low risk area will qualify for flood coverage at a preferred rate. Preferred Risk Policy rates are the lowest premiums available through the NFIP, and they offer building and contents coverage for one low price. Premiums start at $567 a year for both building and contents coverage. If you opt for contents only coverage, the rate starts at $162 per year. If you don’t qualify for a Preferred Risk Policy, a standard rated policy is still available.


If your business is in a high-risk area the standard rated policy will be the only option available for you.

Your flood rate will be calculated based on some of the following factors:

  • Year of building construction
  • Type of occupancy
  • Number of stories
  • Contents location
  • The flood zone
  • The elevation of the lowest floor in relation to the expected flood level
  • The deductible and coverage limits you choose

A flood policy from NFIP will only provide coverage for direct physical loss by or from flood. To be considered flood damage, the flood must affect two or more acres of normally dry land or two or more properties.

Just a few things that flood insurance will NOT pay for are listed below:

  • Loss of revenue or profits
  • Loss of access to the insured property
  • Loss of use of the insured property
  • Loss from interruption of business or production
  • Any additional expenses incurred while the insured building is being repaired or is unable to be occupied
  • Any other economic loss

As your agent we can convert this seemingly complicated process into a few simple steps for you. For more information about commercial property insurance and commercial flood insurance email me at TKrider@InnerHarbourFLA.com or call me at (850) 837-3629.

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