Under FEMA’s National Flood Insurance Program, flood protection is available to all commercial business owners. However, much like any other insurance policy, rates vary depending on if qualify and the type of policy your purchase.
In order to qualify for FEMA’s National Flood Insurance Program, your business must reside in a community that participates in the NFIP and must have taken the proper safeguards in flood protection.
Commercial businesses in a moderate to low-risk area can qualify for a Preferred Risk Policy. This is the lowest policy option which can begin at a price of $643 a year which will cover up to 100,000 in damages. However, in the highest possible coverage purchased ($2,938), you can receive up to $500,000 to protect your building and another $500,000 to protect the housed contents.
A business owner may also opt for a contents only policy. The lowest premium here is $174 for $50,000 worth of protection. For $965, you may recieve up to $500,000 in content protection.
In order to calculate your premium, one must look at several factors:
- Your flood zone
- Building’s year of construction
- How many people reside in the building
- Number of floods in building
- Location of contents
- The detuctable you choose
Commercial property owners should also be aware of what is covered under FEMA’s National Flood Insurance Program:
- Structual damage
- Plumbing and electrical
- Furnance, water heater, or central air unit
- Stove, refrigerators, dishwasher
- Carpet, cabinets, wallboard, paneling, windows
- Clothing, furniture, electrical equipment
- Air conditioners, microwave
- Washers and dryers
- Valuable items such as artwork
One should note that there are restrictions to the insurance as the following is not covered or limited in its coverage:
- Structual damage or mildew damage that was pre-existing
- Currency or valuable paper
- Financial losses due to bussiness interuption
- Contents outside building
- Basements, crawl spaces, and similar areas are limited in coverage.