The National Flood Insurance Program: Options and Coverage

8/24/2018 (Permalink)

Thunderstorm damage on a garage in a Melbourne Beach, FL residence

Commercial property owners in Melbourne Beach, FL, can get both building property and personal property coverage under the National Flood Insurance Program offered under FEMA. These commercial insurance policies can protect you from the massive cost of repairing your business after a major storm.

Scope of the Coverage

The NFIP is designed to offer protection in the event that a single flooding incident occurs. Flood insurance typically pays for damages to property that are caused directly by the flood in question. Therefore, a flood policy would not cover:

• Water damage, such as a mold problem, that results from the neglect of the property owner to hire remediation services in a timely manner
• Losses that result from the interruption of business operations
• Sewer backups that were not caused by the flood
• Property located outside the building, such as landscaping, other structures or vehicles

Building Property vs. Personal Property

Your commercial insurance policies through the NFIP can either be building property coverage, personal property coverage or both. Building property insurance covers the actual structure of the building and the equipment or systems that are inherently a part of it. For example, repairs to the fire sprinkler system and the HVAC system are paid for by this policy. It also covers permanently installed or built-in features such as walk-in freezers. Personal property insurance covers the items in the building that are affected by flooding. Appliances, furniture, inventory, carpets, machines and equipment fall under this coverage. Valuable items, such as art, may also be covered to a certain extent, although it is advisable to have an additional policy to insure these items. Personal property insurance can also cover vehicles that don't require a license to operate as long as they are stored in the building.

When storm season in Palm Bay, FL, arrives, you may need both building property and personal property insurance for your business. These commercial insurance policies protect you from the daunting costs of rebuilding after a flood.