If you run a business–especially in a flood-prone area–flood insurance should be an essential component of your disaster preparedness plan. Clean up and recovery after flood damage can be extensive and financially draining.

National Flood Insurance Program (NFIP)

Through the federal government’s National Flood Insurance Program (NFIP), you can get up to $500,000 coverage for your buildings and $500,000 coverage for the contents; along with coverage for prevention, protection, cleanup, and the increased cost of compliance.

NFIP coverage is usually the cheapest, but it’s a one-size-fits-all solution that comes with a few caveats.

  • Policies only cover one building/structure on the property. If you have multiple structures, you’ll need a separate policy for each one.
  • Policies are “direct-loss,” meaning they only cover damages directly touched by flood waters.
  • There is a 30-day waiting period before the policy goes into effect.
  • There is no coverage for extras such as business interruption, property outside your building, or business vehicles.

Coverage Through a Private Insurer

If you need higher limits of coverage than an NFIP policy can provide, you can purchase excess flood insurance coverage through a private insurer in addition to your NFIP policy; or you can get all of your flood insurance through a private insurer.

There are advantages to getting flood insurance through a private carrier; like better and broader coverage, greater flexibility, shorter waiting periods and coverage for extras such as business interruption—which is good for business owners.

To choose the best option for you, carefully assess your needs. Find out if your property is located in a high-risk area, how many structures you need to protect, the total value of your buildings and contents, and if NFIP limits adequately cover your business.

For more information, visit TDAmemberinsure.com. You can also contact Kim Kilpatrick at quotes@tdamemberinsure.com or call her toll free at 888-588-5420.