What Is and Is Not Covered By an NFIP Policy
What Is Covered by an NFIP Policy and What Isn't
When you are purchasing commercial insurance through the National Flood Insurance Program, it is important to know what it does and does not cover. Here are a few things that you make sure that you have when you purchase this type of policy.
Building coverage protects:
- Electrical, fuel, air conditioning and plumbing systems
- Cabinets, carpet, bookcases and filing cabinets that are permanently installed
- Detached garages
Essentially it covers any property that is permanently affixed to your business and most major systems. This type of commercial insurance coverage might also cover flood remediation in Goleta, CA, or wherever your business is located.
Property or Contents Coverage
This coverage protects the contents of your building. It will cover personal property, curtains, portable air conditioning units and other valuable items. Your flood policy may also cover inventory and other items that belong to your business, depending on how it is written. If you have inventory, check with your underwriter to make sure it is covered.
What It Does Not Cover
The National Flood Insurance Program does not cover properties that are not affected by a flood under its definition. The FEMA definition of a flood under this program is an excess of water on at least two acres of land or affecting two or more properties. For instance, if you are flooded by a broken pipe or your toilet backs up and floods, you will not be covered under this program.
This type of insurance also does not cover financial losses from a business interruption, vehicles and valuable papers. You want to make sure that you have offsite copies of valuable papers in case of a flood or fire.
When you are purchasing a National Flood Insurance Protection policy, it is extremely important to make sure that you know precisely what is and is not covered. If you are worried about specific contents or other types of flooding, you might need to check into purchasing an additional commercial insurance policy.