SO HOW MUCH DOES COMMERCIAL FLOOD INSURANCE COST?
At The Flood Insurance Guru, we prioritize commercial flood insurance education. You see we bought a property in a flood zone more than 10 years ago and did not have the information we needed at the time. We were told premiums were going to be 10 times more than they should have been, So for the last 10 years, we have been giving business owners the information they need to make educated commercial flood insurance buying decisions. We want to give you the information you need so you can be confident when purchasing commercial flood insurance.
But some of these questions aren’t so easy to answer. It's probably why many insurance companies do not discuss it on their websites. One of those is “How much does commercial flood insurance cost?”
Commercial flood insurance pricing historically has been very complex, but our goal is to help simplify it for you
We’re going to do our best to explain to you how commercial flo0d insurance pricing works, so hopefully, you can have an idea of what to expect, before you get a commercial flood insurance policy.
What type of residential flood insurance do you need?
- Building coverage
- Contents coverage
- Living expenses
How much flood insurance do you need?
As a property owner, it can be challenging to figure out how much flood insurance coverage you need.
Many property owners usually want to go with just whatever the bank is requiring. The problem is this can leave them about 40% below what they really need when a claim happens.
This is why it is recommended that you select enough coverage to replace the home.
What deductible should you pick?
When selecting an insurance plan it has been said the higher deductible you pick the lower the premium will be.
On flood insurance, we have seen that higher deductibles usually don't impact flood insurance premiums much.
You should pick a deductible that you feel comfortable paying. Remember generally each coverage type will have its own deductible.
OK, BUT REALLY, WHAT CAN MY BUSINESS EXPECT TO PAY FOR COMMERCIAL FLOOD INSURANCE?
When it comes to commercial flood insurance pricing can rage a lot based on the risk and commercial coverages selected.
It's important to know each risk has its unique rating, so each commercial flood insurance policy is going to be different.
Three things that can have the biggest impact on ratings are the replacement cost of the building, distance to water, and elevation of the building.
Who can do an elevation certificate?
An Elevation Certificate can be prepared by a licensed land surveyor, professional engineer, or certified architect who is authorized by law to certify elevation information. These professionals must be licensed in the state where the property is located. It's important to ensure that the individual or firm you choose has experience with Elevation Certificates and is familiar with the specific requirements and guidelines set by the Federal Emergency Management Agency (FEMA) for floodplain management purposes and to support the National Flood Insurance Program (NFIP).
Why do I need an elevation certificate?
An Elevation Certificate is crucial for lowering flood insurance rates, meeting local county guidelines, and helping with flood zone changes.
Can I use an existing elevation certificate?
If a previous owner of your property obtained an Elevation Certificate, you might be able to use it for your flood insurance needs, provided there have been no significant changes to the property or the surrounding area's flood risk.