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14.4 NFIP Commercial Coverage

The National Flood Insurance Program (NFIP) defines a flood as the inundation of normally dry land caused by:

  • Overflow of inland or tidal waters, such as a hurricane-generated storm surge.
  • Unusual and rapid accumulation or runoff of surface waters.
  • Mudslide or mudflow caused by the accumulation of water.
  • Collapse or destabilization of land along a shoreline due to erosion or the effects of waves or water currents exceeding normal, cyclical levels.

To qualify as a flood under the National Flood Insurance Program (NFIP), the flooding must affect at least 2 acres of normally dry land or two or more properties, including the insured's property.

For commercial risks, National Flood Insurance Program (NFIP) coverage is written on the General Property Form, which includes:

  • Coverage A – Building Property: Covers eligible buildings that are walled, roofed, above ground, and permanently attached to a site.
  • Coverage B – Personal Property: Covers eligible personal property located inside a fully enclosed building.
  • Coverage C – Other Coverages: Includes additional coverages, such as debris removal.
  • Coverage D – Increased Cost of Compliance: Provides coverage for certain costs to comply with floodplain management requirements, similar to ordinance or law coverage.

The National Flood Insurance Program (NFIP) does not cover indirect losses, including loss of use, business income, and extra expense.

Flood insurance is available through participating private insurers under the Write Your Own (WYO) Program or directly through the National Flood Insurance Program (NFIP). Although licensed insurance agents may sell NFIP flood policies, they cannot bind coverage on the NFIP's behalf.