Wind and lightning damage is usually covered by a commercial property policy or a separate wind policy. Flood damage usually isn’t. If your business owns a building, leases space or keeps inventory and equipment on site, flood is worth a close look, whether or not you’re in a high-risk flood zone.
What counts as a flood
The National Flood Insurance Program (NFIP) uses a specific definition. Under that definition, a flood is a general and temporary condition where water or mudflow covers two or more acres of normally dry land, or two or more properties, at least one of them yours. Common causes in Florida include storm surge, heavy rain, overflowing rivers and lakes and blocked storm drains.
Does my commercial property policy cover flood?
Usually not. Standard commercial property policies and business owners policies generally exclude flood, including storm surge. Some policies offer limited flood coverage by endorsement, but it’s often small or excludes high-risk areas. Check your policy, or ask us to.
Is flood insurance required?
It can be. If your building is in a high-risk flood area, known as a special flood hazard area, and you have a loan from a federally regulated or insured lender, the lender is generally required to make you carry flood insurance. Lenders can also require it outside high-risk areas. Leases often require tenants or landlords to carry it too.
Even when it isn’t required, many floods happen outside high-risk zones. Our post on flood insurance when you’re not in a flood zone explains why.
How NFIP commercial coverage works
- Building coverage up to $500,000 per building
- Contents coverage up to $500,000 for a non-residential business, bought separately. This includes furniture, equipment and stock. (For apartment buildings with five or more units, the owner’s contents limit is $100,000.)
- Contents for a tenant can include a limited amount for improvements you made to space you lease.
- Losses are generally paid at actual cash value for commercial property, meaning replacement cost minus depreciation.
- There’s generally a 30-day waiting period before a new policy or an increase in coverage takes effect. There are some exceptions, such as when you buy it in connection with making, increasing, extending or renewing a loan on the building.
- NFIP policies don’t cover lost income from business interruption, or property outside the building such as landscaping, fences and pools.
Private and excess flood
Private flood policies and excess flood policies are available for many Florida businesses. Depending on the policy, they may offer higher limits, replacement cost, business income coverage or a shorter waiting period. Terms vary a lot. Our NFIP vs. private flood guide compares the two.
Before hurricane season
- Find out your flood zone. Our flood guides include county pages.
- Check whether your lender or lease requires flood coverage.
- Because of the 30-day wait, buy or increase coverage well before a storm forms.
- Keep an inventory of equipment and stock, with photos.
- Read our hurricane planning guide for businesses for wind deductibles and lost income.
Sources
- FEMA FloodSmart, Buy a Flood Insurance Policy
- FEMA, NFIP Summary of Coverage: Commercial Property
- FEMA, The Ins and Outs of NFIP Commercial Coverage
- FDIC, Flood Disaster Protection Act (lender requirements)
This is general educational information. Coverage depends on each policy’s terms, conditions and endorsements. Flood program details are from FEMA and can change.
Questions? A licensed member of our team can talk it through with you. McGriff-Williams Insurance is an independent insurance agency in Gainesville, in business since 1983 and licensed in Florida. We’re at 3501 W University Ave, Gainesville, FL 32607. Call (352) 371-7977, Monday to Friday, 9 a.m. to 5 p.m.
Where confidence grows.
Last updated October 31, 2026
