4 Things You Need to Know About the National Flood Insurance Program

7/15/2021 (Permalink)

Office suffering from storm damage.

The National Flood Insurance Program

As a commercial property owner in Gladstone, MO, you may protect your investment with a commercial insurance policy. The National Flood Insurance Program through the Federal Emergency Management Agency may provide you with some coverage. Your commercial storm damage remediation professional may be able to help you learn more about the NFIP.

1. It covers building property damage. This type of flood policy is designed to help you pay for the structural damages done to your building. This means the general policy does not cover the personal belongings within the building. Instead, it helps cover damages done to the foundation, plumbing, awnings, HVAC systems and other permanent fixtures of the property.

2. It won't help pay for damages that could have been avoided. Like other commercial insurance policies dedicated to flooding, this one won't pay for any water issues that you neglected to fix. For example, if a leaking pipe caused major flooding on your property, the damages may not be covered if you knew about the leak beforehand but chose not to fix it.

3. The value of damages is based on actual cash value. When an assessor comes out to your property, he or she will consider how much it will cost to replace the items that were destroyed in the flooding. That cost minus the physical depreciation of the item will equal how much you could get.

4. It can save you from the sole financial burden. While this policy through FEMA may not cover all issues caused by a storm, it can help you with the financial aspect of the repairs. Having any type of flood policy can make you feel more secure when a bad storm rolls through the area.

Not all commercial insurance policies are the same. If you want to understand the coverage you have for your commercial property, you need to contact your insurance provider.