Average Cost of Flood Insurance for Your Business
Would you be surprised to learn that the number one natural disaster in the United States is flooding? Every state in the union has had some type of flooding in the past 5 years.
Do you know your business’s risk of flooding based on its location? If not, it’s a good idea to find out and research the world of commercial flood insurance.
It’s just as important to protect your business from unexpected natural disasters as you would your home. Keep reading and explore the average cost of flood insurance in 2020.
Do You Need Flood Insurance for Your Business?
You already have commercial property insurance. Do you need flood insurance as well?
If your business is located in or near a flood zone, the answer is yes. Commercial property insurance does not cover damage to your business caused by flooding.
Average Cost of Flood Insurance
How much does flood insurance cost? As with any type of insurance, that depends on the location of your business and the flood risk in that location.
Considering the size of the building, location, elevation, and level of coverage as well, the average national cost of flood insurance is $700 per year but can be more than $10,000 per year according to The National Flood Insurance Program (NFIP).
The NFIP program is managed by FEMA and offered nationally by NFIP Direct and a number of different insurance companies throughout the country.
The riskiest flood zones are Flood Zones V and A. V includes coastal areas where you are likely to experience waves and storm surge. A includes regions that are inland, but close to bodies of water with a risk of banks overflowing.
Let’s look at Flood Zone A for example. With $250,000 building coverage and $100,000 contents coverage, the premium is $6,500 per year. This same coverage is more for Zone V and less for the moderate-to-low-risk zones.
Types of Coverage
Two types of commercial building flood insurance coverage exist and you have the option to buy one or both.
This covers your company’s inventory, merchandise, machinery if applicable, and the complete contents of your business up to $500,000.
Even if you don’t own the building in which your business is located, you can obtain coverage. You can insure the value of improvements you made in creating your business in that space. The coverage is for up to $500,000 as well.
If your business has a higher value, you may purchase additional flood coverage.
Wondering what commercial flood insurance covers? Find out all you need to know here.
Flood Insurance for Commercial Property
Now that you know the average cost of flood insurance, you can explore your options with the knowledge you need to make an informed decision regarding flood insurance for your business.
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