Is Flood Insurance available for my business? What about my condo association?
As Hurricane Irma and Hurricane Maria leave North Carolina behind, we received many calls about Flood Insurance! Some of the most frequently asked questions were -
Is Flood Insurance available for my business?
Yes! Generally, a business can buy flood insurance for their building and contents thru the National Flood Insurance Program. Additional coverage for loss of business or loss of income or higher building limits can be purchased with a flood policy by also purchasing an "Excess Flood" policy over the base Flood Policy.
What if I am not "in a flood zone?"
Almost all of North Carolina is "in a flood zone." Often people think that being in a "low-hazard" area means Flood Insurance is not available. At least 20% of flood claims happen outside of high hazard areas. Coverage can be purchased (usually for less than $250 to $500 a year). https://www.fema.gov/national-flood-insurance-program Flood insurance for a renter can be as low as $112 a year.
Is coverage available for Condominium Associations?
Yes. Ask us for a quote for your condo association. Each building requires a separate policy.
Are flood quotes and policies available if my mortgagee company does not require Flood Insurance?
Yes. Mortgage companies only require flood insurance for high hazard properties. Mortgage companies require this as risk management for their loan. Home and business owners can purchase a Flood Policy without a mortgage.
Won't the government provide disaster assistance anyhow?
Most federal disaster assistance (if available, if there is a Presidential Disaster Declaration ) comes in the form of a loan. A low interest loan from the SBA. FEMA offers disaster grants that don't need to be paid back, but this amount is often much less than what is needed to recover. A claim against your flood insurance policy could and often does, provide more funds for recovery than those you could qualify for from FEMA or the SBA--and you don't have to pay it back. And you don't have to wait for a grant or loan application to process. A business that needs to be open quickly may not be able to recover from a long loan process.
Does my business really NEED flood insurance?
Almost 40 percent of small businesses never reopen their doors following a disaster. the average commercial flood claim has amounted to just over $85,000. https://www.fema.gov/protecting-your-businesses
If I call today, can I get a policy right away?
No. Unless there is a loan closing, Flood Insurance requires a 30 day waiting period from the date of purchase. That means now is the best time to buy flood insurance.
Doesn't my Business Owners policy cover Flood? It covers Fire, Lightning and Wind - all hurricane type events... doesn't that mean flood is covered?
Usually - No. If you aren't sure, call us today to check your policy. Some commercial packages can add flood coverage - but most commercial policies and ALL homeowners policies exclude flood hazards. We would be happy to review your policy for you.
What about my Farm? Is Flood Insurance available for Farm buildings? Farm Equipment?
Flood Insurance is available for Farm houses and most enclosed farm buildings. Each building needs a separate policy and Flood Insurance does not cover lagoons or swimming pools. Equipment can be insured under equipment policies - but each policy is different. Check with your agent to see if your equipment is covered for the hazard of Flood.
Still unsure about Flood Insurance? Why wonder? Call us for a quote! 919-755-1401
