marina insurance

What Does Flood Insurance Exclude?

Your business faces numerous potential threats ranging from dishonest employees to fires to customer fraud. Just as there are insurance policies which cover these types of issues, insurance is available in case of business flooding. Keep in mind, however, that your flood insurance policy doesn’t cover every scenario.

Minimum Acreage or Affected Properties

The National Flood Insurance Program defines a flood as the presence of water on land that is typically dry, and results in one or both of the following:

  • Damage to two or more properties
  • Water on two or more acres (87,120 square ft)

Unfortunately, if yours is the only structure affected by the water and the water covers less than two acres, you will likely not be covered by your flood insurance policy.

Floods Occurring Within 30 Days of Policy Purchase

It is imperative that you purchase your flood insurance well in advance of a flood – specifically, at least 31 days before it happens. Flood insurance policies typically exclude instances of flooding which occur in the first 30 days of purchasing your policy.

Financial Losses

Financial losses resulting from business interruption are not covered by your policy. If you must close your doors for any length of time, you will not be compensated for lost business.

Business flood insurance can help alleviate the stresses and strains after a flood, but keep in mind that your policy won’t cover every loss that involves water.