Crazy Weather and what You Need to Know about Flood Insurance

What we don’t see is how businesses and individuals deal with the financial impact of a flood.


WFM Staff  ·  September 11, 2017

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If you own a building that has a bank-held mortgage and that building is located in a flood zone “A” or “V,” it’s likely that you’ve already had to purchase flood insurance. However, if your facility is not in one of these zones, or if your church has no mortgage, you may never have had to address the need for flood insurance. Unless your facility is located in an area that has recently experienced a flood, your insurance agent may never point out that flood is specifically excluded from your property insurance policy.

So, you understand there may be a potential for damage from a flood. How do you deal with this potential for a loss?

Armed with the age of your buildings, the replacement value of your building and the replacement value of your contents, contact a flood insurance specialist. These are insurance agents who have been trained by the National Flood Insurance Program (NFIP) to review your situation and provide insurance quotes through NFIP-authorized flood insurance companies.

The U.S. federal government provides the financial backing for the NFIP programs. The policies can provide up to $500,000 coverage on a building and/or $500,000 coverage on contents provided the location meets NFIP guidelines. The polices can have deductibles ranging from $1,000 per claim to $10,000 per claim. Working with your agent, you can select the appropriate coverage level and deductible to meet your needs.

Frequently the NFIP policies cannot provide the total coverage limit needed. In this situation, insurance may be available in the commercial  marketplace to provide additional limits for building, contents and to include loss of income or other specialized coverage (not available from NFIP). In some instances, a commercial insurance company may be able to include coverage for the flood exposure in your normal business insurance package.

Working with a flood insurance professional can provide you with options and risk assessment information to help you make an educated risk management decision for your facility. Don’t be caught unprepared this flood season.

Betty J. Meier (CPCU, CIC, ARM, CRM, ASLI, CSRM) and Robert L. Meier (CRM, CSRM) are the owners of Adaptive Insurance Agency, LLC located in Scottsdale, Arizona. Betty has been in the insurance industry as an agent and risk manager for over 35 years, while Robert joined the industry in 2000 after retiring from a career in education.

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