$500,000
Building
Maximum NFIP building coverage per non-residential building.
For business property
Commercial flood
insurance.
Your property policy most likely excludes flood. Here is how to close that gap for your building, inventory and equipment.
Commercial flood review
A licensed broker reviews your building and compares the flood options available for it. There is no instant online flood quote here.
The gap
Does business insurance cover flooding?
Usually not. Standard commercial property policies, business owner’s policies and commercial package policies typically exclude flood, including storm surge. Wind or lightning damage may be covered while the water that follows is not. Flood is insured separately, through the National Flood Insurance Program (NFIP) or a private flood insurer.
What commercial property insurance costs →National Flood Insurance Program
NFIP commercial limits.
Building and contents are separate coverages with separate limits. If you lease your space, agree with your landlord on who insures the building and who insures what is inside.
$500,000
Contents
Maximum NFIP coverage for inventory, machinery, furniture and other business property.
Not covered by the NFIP
Business interruption and loss of use. Also most vehicles, money, valuable papers and property outside the building such as landscaping, fences, walkways and septic systems.
Timing
The 30-day waiting period.
New NFIP policies and increases in coverage generally take effect 30 days after purchase. Buying once a storm is in the forecast is usually too late.
Exceptions
- No waiting period when coverage is bought in connection with making, increasing, extending or renewing a loan secured by the building.
- A 1-day wait during the first 13 months after a flood map revision newly places the building in a high-risk area.
- A 1-day wait in qualifying cases where wildfire on federal land caused or worsened the flooding.
Private flood policies set their own waiting periods, so check each one.
Beyond the NFIP
Private and excess flood.
Some private insurers write flood as a primary policy, and excess flood can sit above NFIP limits for buildings and contents worth more than $500,000 each.
Business income
Because NFIP commercial policies do not cover business interruption, look for it in excess or private flood terms. Availability and wording vary, so compare waiting periods, deductibles and what counts as a flood alongside the price.
Lender acceptance
Since July 1, 2019, federally regulated lenders must accept private flood policies that meet the statutory definition of private flood insurance. Ask your lender for its requirements before switching.
Get a commercial flood review.
Reviewed by a broker, not priced instantly online.
Risk and requirements
Flood zones, lenders and elevation certificates.
Flood zones
FEMA maps Special Flood Hazard Areas, zones starting with A or V, where flooding has at least a 1% chance each year. FEMA notes that works out to about a 26% chance over a 30-year mortgage.
Lender requirements
If the building is in a Special Flood Hazard Area of a participating community and the loan comes from a federally regulated or insured lender, flood insurance is required for the life of the loan. Lenders can ask for more than the federal minimum.
Elevation certificates
Under FEMA’s current Risk Rating 2.0 pricing, an elevation certificate is no longer required to buy NFIP coverage. If you have one, or get one, it can be submitted to see whether it lowers the premium.
Before you start
What to have ready.
- Property address and how the building is used
- Construction type, year built, number of floors and any basement or below-grade space
- Building and contents values, and whether you own or lease
- An elevation certificate, if you have one
- Your current property policy and any lender flood requirement
- Past flood damage or claims at the location
Common questions
Commercial flood questions.
Does business insurance cover flooding?
Usually not. Standard commercial property policies and business owner’s policies typically exclude flood, including storm surge. Flood is insured separately through the National Flood Insurance Program (NFIP) or a private flood policy.
What are the NFIP limits for a commercial building?
For a non-residential building, the NFIP offers up to $500,000 for the building and up to $500,000 for its contents, per building. Properties worth more may need excess or private flood coverage on top.
How long before a commercial flood policy starts?
A new NFIP policy generally takes effect after a 30-day waiting period. There is no wait when the purchase is tied to making, increasing, extending or renewing a loan on the building, and a 1-day wait applies in limited cases such as a recent map change into a high-risk zone.
Does flood insurance cover lost business income?
NFIP commercial policies do not cover business interruption or loss of use. Some excess and private flood policies include business income coverage, so compare that wording if a closure would hurt.
Do I need flood insurance if my building is not in a high-risk zone?
A lender may not require it, but flooding is not limited to mapped high-risk areas. Base the decision on the building’s actual exposure, the cost of recovery and how long you could operate while closed.
Can I get an instant flood quote on this page?
No. Commercial flood is reviewed by a licensed broker. You share the property details and Florin compares the options available for that building. Any coverage and start date must be separately confirmed.
Insuring the rest of the business too? See contractor insurance or commercial auto.
Keep reading
Practical guides for business property.
How much does commercial property insurance cost?
Small businesses often pay about $100 a month to insure equipment, inventory and space; buildings cost much more. See benchmarks and what drives price.
Get covered.
Florin reviews your property and compares options. Any coverage must be separately confirmed.