Many of the standard commercial property forms used to include coverage for building and contents losses resulting from a flood. However, with the recent devastation from major flood losses over the last few years, many of the preferred carriers completely exclude coverage for flooding. This exclusion is not about water damage from a frozen or busted pipe. These losses are covered as are losses resulting from water damage from a storm that enters a structure from the roof or walls. Flood losses that are excluded result from a sudden buildup of subsurface water that enters from ground level or through basements and/or foundations.
As mentioned, these types of losses have become more and more common due to hurricanes and increasingly violent weather. Flooding in the northeast has been on the rise due to the remnants of these southern hurricanes hitting our area. Regardless of whether or not a property is located in a flood zone, a separate flood policy can be purchased. The flood zone a building is located in along with the amount of coverage needed will determine the policy premium. You will be surprised at the relatively inexpensive premium for a preferred risk policy if you qualify due to being located in a low risk area.
Hanson & Ryan is a producer for the National Flood Plan. Even though the federal government sets the rates, our agency can help reduce your premiums through the use of higher deductibles and elevation certificates, if applicable. We utilize our well-known partners at Selective Insurance to be the servicing carriers that issue the actual flood policy and assist in any potential claims handling. Please let our experienced professionals check your flood zone and run some policy options for you to consider protecting your business investment from being ravaged by a flood. Our agency can also place excess flood policies for large risks needing coverage beyond the limits offered under the national flood policy. Whether you are in a low or high-risk flood area, we have the right flood policy for you.