Many catastrophic property exposures are not covered by your regular Commercial Property policy.

Therefore, you have to buy them separately.  This includes property coverage for: earthquake, wind and hail, hurricanes, and flood.

Property coverage for earthquake, wind and hail, and hurricanes is generally available through the commercial marketplace. 

However, flood is a whole different animal because you have to buy it through the highly regulated insurance marketplace (NFIP – National Flood Insurance Program).

Flood is a peril that is not covered by your Property policy. It must be purchased through the National Flood Insurance Program (NFIP).

The rates are regulated through the NFIP and should not change from carrier to carrier.

A flood as defined by FEMA.gov is:

• “A general and temporary condition of partial or complete inundation of 2 or more acres of normally dry land area or of 2 or more properties (at least 1 of which is the policyholder’s property) from:
• Overflow of inland or tidal waters or
• Unusual and rapid accumulation or runoff of surface waters from any source or
• Mudflow or
• Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.” (Source: https://www.fe ma.gov/national-flood-insurance-program/definitions#F)

Though you must purchase flood insurance from NFIP, the coverage provided in those policies are very frequently not nearly adequate to protect all of your business assets. While many times business owners’ purchase flood insurance to satisfy a lender requirement, your exposure to flood is very likely much greater than you think. The definition listed above is very broad. In order to make sure that your business is protected from the peril of flood at a level that makes you feel comfortable, you have the option of purchasing Excess Flood outside of NFIP.