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Insurance | 2 min read

Three Reasons You Should Take Excess Flood Insurance Seriously

excess-flood-insuranceNow that summer has officially begun, and most people are thinking about sunshine and beach vacations, the thought of rainy weather is a distant memory. While a flood and flood damage may be far from most people's minds, as a business owner, you have too much at stake to take risks, such as a flood, lightly.

Being the responsible business owner that you are, you likely have all of your commercial insurance needs in place. From general liability to commercial umbrella, you have most certainly taken steps to protect your business, right? Of course you have!

Unfortunately, most business owners don't consider the importance of excess flood insurance as part of their risk management needs.

Consider these reasons you should take excess flood insurance seriously:​

  1. Flooding is a clear and present danger

    According to the National Flood Insurance Program (NFIP)​, floods are the #1 natural hazard in the U.S. Additionally, floods occur every day in all regions of the country, and 90% of all natural disasters in the U.S. involve flooding. Numbers and statistics don't lie, and when it comes to calculating the amount of risk your business can take on, the dangers of a flood may be too high to ignore. Flooding does not only occur from Named Storms. From major rain storms to rapid snow melt, there are many other causes of major flooding that can damage your property.

  2. A standard flood insurance policy may be insufficient

    If you own a commercial property, your standard flood insurance policy may not be sufficient to cover damages incurred during a flood. A standard flood insurance policy typically only provides coverage up to $500,000 for a commercial property. Should your property suffer loss or damage, and the cost to rebuild is more than $500,000, you will obviously have a deficiency. An excess flood insurance policy​ could protect you in this scenario, providing coverage up to the replacement cost of your structure above the NFIP limits.

  3. Excess flood insurance covers your building contents

    It's likely that you have equipment, tools, inventory, computer software, or other supplies amassed in your commercial property that are vital to your business operations. Does your standard flood insurance policy provide enough coverage to replace them if your property suffers damage or loss? An excess flood policy can provide coverage to replace stand-alone contents up to their actual cash value, plus protection against business interruption suffered from a flood. 

The longevity of your business is too important to roll the dice with insufficient flood insurance coverage.

This article is for information purposes only. Flood insurance rates vary depending on flood zone ratings.


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Tyreo Harrison

As Executive Vice President, Lending & Insurance Solutions, Ty Harrison leads teams of lending and insurance professionals that are dedicated to delivering value-added programs, services and technology tailored to address the needs of lenders, loan servicers, portfolio managers, mortgage brokers, insurance agents and insurance brokers.

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