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What is Commercial Flood Insurance?

Commercial flood insurance is a specialized type of property insurance that provides financial protection against damage caused by floods. Sometimes, people refer to it as commercial excess flood insurance.

Unlike standard commercial property insurance, flood insurance for businesses covers losses caused by water damage resulting from flooding. Flooding can happen just about anywhere, so be sure to consider adding flood insurance to your commercial policy.

Main Street America Insurance offers flood insurance plans backed by the National Flood Insurance Program (NFIP). The NFIP is managed by the Federal Emergency Management Agency (FEMA). Congress created it to protect property owners from the financial losses caused by floods.

To understand your flood coverage options based on your unique needs, find an agent using our easy locator.

Commercial Flood Insurance Coverages

What does commercial flood insurance cover? Business flood insurance offers two main types of coverage to protect for your building and contents.

Building Coverage

Covers the physical structure of your business premises. Policies typically cover: the foundation, electrical and plumbing systems, windows, HVAC equipment, and permanently installed fixtures.

Contents Coverage

Covers the contents within the building. Typically this includes: furniture, equipment, inventory, carpets not included in building coverage, currency, and other business personal property.

What is Not Covered by Flood Insurance?

Flood insurance doesn’t cover damage caused by moisture, mildew, or mold that could have been avoided by the property owner.

The cause of the flood is also a factor in coverage. For example, flood insurance does not cover water backup damage from a blocked sewer pipe. It also wouldn't cover sub-surface water seeping through your basement walls.

Flood policies have a 30-day waiting period. In other words, you need to wait 30 days from when you purchase before the policy takes effect. This means that you can't afford to wait until a flood is imminent to secure coverage. Acting proactively is key to protecting your business and ensuring you have the necessary financial support when disaster strikes.

Commercial flood insurance also does not cover every type of loss. If your business is closed because of a flood, flood insurance won't help with the financial loss you experience. Your local, independent insurance agent will work with you to ensure you have the right coverage for your needs.

Do I Need Flood Insurance?

A common question is: does commercial insurance cover flood damage? No, your regular business insurance does not cover floods. Flood insurance for commercial buildings and its contents is an important consideration.

Flooding is a serious threat that can wreak havoc on businesses, causing extensive damage and financial loss. Just one inch of water can cause $25,000 of damage!*, and floods are the most common natural disaster in the United States**. Flooding can happen anywhere, regardless of its risk level.

When is Flood Insurance Required?

Your business may be required to have flood insurance if:

  • You have a mortgage from a federally-insured or regulated lender
  • You are in a high-risk flood zone


Should I Get Flood Insurance If Not in a Flood Zone?

Yes! Floods can happen anywhere and at any time. Common causes are heavy rain, fast melting snow, storm surge, and overflowing rivers. Water runoff can damage the building, your equipment, and your inventory. There are many other causes beyond storms that can cause floods. A broken dam or even vegetation changes after a wildfire can quickly change your risk.

FEMA’s flood maps are a useful guide for where flood waters may happen, but many incidents happen even in the lowest risk zones. In fact, 20% of flood claims come from properties outside of high-risk flood zones.***

How Much is Commercial Flood Insurance?

The cost of commercial flood insurance varies depending on factors like: your business location, the building's age and design, the location of your contents, and coverage amounts. Commercial flood insurance cost can cost a few hundred dollars to several thousand dollars per year.

Commercial properties can secure up to $500,000 of coverage for the building and $500,000 for contents (purchased separately). Your policy will state your business's coverage limits, deductibles, and premium.

To get an accurate estimate or ask coverage questions, find an agent and request a personalized quote.

Get a Flood Quote

If you’re wondering how to get a commercial flood insurance quote, contact a Main Street America Insurance agent today. We partner with experts in your local area to help you understand your flood risk and find you the best mix of coverage, price, and service.