Twenty storms causing a billion dollars or more each in damage have taken place between 2010 and 2017, not including Hurricane Harvey (which resulted in $125 billion in economic damages), Irene and Maria, compared with nine billion-dollars worth of floods in the full decade of the 1980s, according to inflation-adjusted estimates from the National Oceanic and Atmospheric Administration (NOAA). (This also doesn’t account for Hurricane Florence, the first storm to hit this year.) As a result, the need for all businesses to carry Flood insurance has become increasingly more obvious, due to the frequency and severity of storms hitting the United States.
Many small businesses may go without Flood insurance while others are required to have coverage by mortgage lenders if in high-risk areas for floods. They may purchase coverage through the National Flood Insurance Program (NFIP). NFIP’s General Property Form offers businesses Flood coverage for building property up to $500,000 and up to $500,000 on personal property. Businesses can choose a deductible, depending on their risk tolerance, for both the building property and personal property coverages, which will apply separately.
Yet even with insurance through NFIP, it may not be enough because of the extent of flood damage occurring. Back in 2015, FEMA advisory committee cited in its report that increased development in floodplains, sea level changes and changing climate patterns have resulted in greater flood damages.
For example, one shop in North Carolina had flood damages of $1.5 million when hit by Hurricane Matthew. The business had the maximum coverage available under the federal program, which obviously was not enough to pay for all its damages. In addition, there is no coverage available under the NFIP for loss of income while the business is closed for repairs.
RPS Flood Services provides both Flood and Excess Flood insurance and handles Flood insurance placements for the underlying National Flood Insurance Program (NFIP) and RPS’ In-House Excess Flood facility. Eligible risks include high-valued dwellings, restaurants, public entities, condominiums/townhouses, apartment complexes, office buildings, manufacturing facilities, townships, shopping centers, and schools/universities. Business Interruption coverage is available under the Excess insurance above a $100,000 separate deductible.
We also offer Flood insurance to small retailers. Rating/quoting/binding is made easy through our online platform. Our RPS e-Commerce platform is designed to wrap up the entire quote process in five minutes or less, improving efficiency for our broker partners by saving time and steps. Talk to your business insureds about the need for Flood insurance and visit the RPS e-Commerce platform to provide them with quotes. For larger accounts, please contact RPS Flood Services.