What is Flood Insurance?
Flood insurance is a special policy that is federally backed by the NFIP and available for homeowners, renters and businesses. The standard flood insurance policy pays for direct physical damage to your insured property up to the replacement cost or actual cash value (ACV) of actual damages or the policy limit of liability, whichever is less. For a contractor, most floods consist of rainwater or tidal surge inundating your office or job site. Beware that sometimes flood is excluded on your inland marine policy that covers all of your heavy equipment too. Be sure to verify coverage with your agent.
Business owners: A flood insurance policy will cover up to $500,000 on a non-residential building and its contents. Anything above that amount must be covered under an excess flood policy. A standard flood policy will cover structural damage, including damage to the certain equipment, furnishings, water heaters, air conditioners, floor surfaces (carpeting and tile) and debris clean-up. The contents of your business may not be covered under a standard policy, but for an additional premium, you also may purchase flood coverage.
Coverage for crawlspaces and ground-level enclosures on elevated property is limited. If your business has these spaces, be sure to ask your insurance agent about any restrictions in your coverage. Flood is NOT JUST FOR HURRICANES hitting the state. Flood can include rainstorms too!