Insurance

30-Day Waiting Period
There is typically a 30-day waiting period—from date of purchase—before a new flood policy goes into effect.

Business Property Risk

As a business owner, you know that protecting your building and your contents is vital to its survival. Your business is either in a high-risk or moderate-to-low risk area and insurance premiums vary accordingly.

Moderate-to-Low Risk
Most commercial buildings in a moderate-to-low risk area qualify for coverage at a preferred rate. Preferred Risk Policy premiums are the lowest premiums available through the NFIP, offering building and contents coverage for one low price. You can also opt for Contents only coverage, if you prefer. Premiums start as low as $550 per year for both Building and Contents, while Contents Only coverage starts at $145 per year. Commercial coverage gives you up to $500,000 of insurance to protect your building and up to $500,000 to protect its contents.

If you don't qualify for a Preferred Risk Policy, a standard rated policy is still available. Even though flood insurance isn't federally required, nearly 25% of all NFIP flood claims occur in moderate-to-low risk areas.

High-Risk
If you live in a high-risk area, a standard rated policy is the only option for you. It offers separate building and contents coverage.

Flood insurance premiums are calculated based on factors such as:

• Year of building construction
• Building occupancy
• Number of floors
• The location of its contents
• Its flood risk (i.e. its flood zone)
• The location of the lowest floor in relation to the elevation requirement on the flood map (in newer buildings only)
• The deductible you choose and the amount of building and contents coverage

If your commercial property is in a high-risk flood area and you have a mortgage from a federally regulated or insured lender, you are required to purchase a flood insurance policy.

Be proactive when it comes to purchasing insurance. Ask your insurance agent the following questions:

• What flood zone is my business in? What is my property's flood risk?
• Is flood insurance mandatory for my property? Will the lender require it?
• Do I qualify for a Preferred Risk Policy?
• Does my community participate in the NFIP Community Rating System (CRS)?
• Does my community's CRS rating mean that I qualify for a CRS rating discount?
• What will and won't be covered in case of flood damage?
• How will my premium costs be affected if I get Building Only, Contents Only, or Building & Contents?
• How will my premium costs be affected if I choose a higher deductible?
• Are there additional expenses or fees I should be aware of?
• What is Replacement Cost Value and Actual Cash Value?
• If I have a claim, whom do I call?
• How will my policy be renewed?

Commercial Coverage: What’s Covered

http://www.floodsmart.gov/floodsmart/pdfs/NFIP_Summary_of_Coverage.pdf

We invite all of you to get a discussion going.  Please submit your comments at the end of this article, Thanks.