NFIP and private flood coverage for Kentucky commercial buildings, tenant improvements, business personal property, and business income.
Written by an independent agency in Nicholasville, KY.
At least 25 percent of businesses that close after destructive events such as floods never reopen. We’ll design a policy that will protect your business, as well as its physical contents and assets, from the damage costs that come from floodwater.
A commercial property policy excludes flood the same way a personal policy does, and the gap is larger on the business side. NFIP commercial coverage caps at $500,000 for the building and $500,000 for business personal property, and it pays nothing at all for business income. For most Kentucky businesses, that leaves the two most expensive parts of a flood loss uninsured: the rebuild above the cap, and the months you are closed. Private flood carriers write excess limits above the NFIP caps and can add business interruption. Nova Insurance Group writes both, and we structure them together.
As with personal insurance policies, many business owners don’t realize that their commercial property insurance doesn’t necessarily cover flooding.
Suffering a flood can wipe out a business, because it’s not just a matter of replacing damaged equipment and repairing buildings, but also the sheer time it takes, during which the facilities can’t be used.
In some cases, flood insurance policies don’t take effect until after a 30-day waiting period, so it’s not smart to wait until heavy rain is forecasted in your business’ location.
Additionally, it’s important to note that with commercial properties, sudden excessive rainfall isn’t necessarily the biggest flood risk. You must also factor in drains getting clogged, which can turn a normal rainfall or snow storm into an unexpected catastrophic event.
As a business owner, you’ll need to look at both commercial flood insurance offered through the federal National Flood Insurance Program (NFIP) and commercial flood insurance coverage from non-NFIP policies.
The two big advantages of non-NFIP policies are that they can pay out full replacement costs (whereas NFIP payments account for depreciation), and they can include coverage for loss of business during the rebuilding phase (loss of business is not covered by NFIP).
Whether your business is located in an area of common flooding or not, commercial flood insurance is worth exploring. Contact our insurance experts, and we can help you get started.
For a commercial building or a rental property, call 859-687-2004 and we will quote the excess limits too.
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As an independent agency, we offer multiple options at competitive prices.
