The National Flood Insurance Program (NFIP) is a common way for businesses to get flood coverage in Washington. Floods are classified in insurance as "an excess of water from heavy rain, rising inland or tidal waters, overflowing storm drains, or mudflows on normally dry land, covering two or more acres or affecting two or more properties."
Coverage for flood loss can also be bought outside of the National Flood Insurance Program. It's often called private flood insurance. This type of coverage is often, but not always, from surplus lines insurers.
Standard NFIP commercial flood policy limits
A standard commercial flood policy from the National Flood Insurance Program will cover:
- Building coverage: covers damage to the commercial building, its foundation, and its major installed systems, like HVAC, plumbing, and electrical systems, up to $500,000.
- Contents coverage: covers flood loss of your business equipment, furniture, supplies, inventory, and similar items inside the building, up to $500,000.
On NFIP policies, building and contents claim payments are based on actual cash value, which is the cost of replacement minus depreciation.
Find a complete list of what's covered and not covered under commercial flood insurance policies.
Before you start a claim
As soon as it's safe to do so, put together a list of damaged property and business equipment. Take pictures and videos that highlight high-water lines and damage. Save receipts for any supplies you used to make repairs or limit damage, such as tarps and sandbags.
Filing your commercial flood insurance claim
Your adjuster will give you instructions and documents specific to your claim and policy. In general, follow these steps to get your claim started:
- Report the loss as soon as possible. Start your NFIP claim or private flood insurance claim with an agent as soon as it's safe to do so.
- Document everything. Take extensive photos and videos, note high-water marks, list out all your damaged business property, save samples, and get estimates from contractors.
- Work with your adjuster. A flood insurance adjuster will inspect the damage, explain your coverage, and help you prepare a "proof of loss" form.
- Submit your proof of loss. This is a sworn statement that must be filed within 60 days (some extensions are possible) of your loss.
- Understand your coverage. For example, NFIP covers direct physical loss from flooding, but not mold/mildew or backup from sewers unless you purchase specific endorsements with your policy.
- Know your rights. An adjuster will assess damage and help with your claim, but it's up to the insurance company to approve or deny the claim. If you have immediate recovery needs, you can ask your adjuster about an advance. If you're denied or underpaid, you can file an appeal.
Tips on flood cleanup and insurance claims
- Contact a flood insurance advocate from the National Flood Insurance Program if you have questions or concerns about flood insurance through the program, floodplain mapping, or flood mitigation.
- Talk to your insurer before making permanent repairs or throwing away damaged property.
- Save receipts from anything you buy to help deal with damage, such as sandbags or pumps. Your insurer might pay you back.
- If you have to move, make sure your insurer or agent can contact you.
- Save receipts for temporary repairs, temporary housing, food, etc.