nature disaster, flood


Are you aware that most property policies specifically exclude flood as a covered cause of loss? And with recent weather patterns, even low-risk areas are prone to flooding by unusual and rapid accumulation from heavy rain. Recent events throughout the United States have illustrated this with record high water levels in historically low flood risk zones. Flood can also be caused by drought and wildfires. Both of these events cause changes in soil conditions which leads to reduced absorption of water and increased runoff during heavy rain.

Did you know?

  • Most business insurance policies exclude flood damage.
  • 90% of all natural disasters involve flooding.
  • NFIP estimates, just one inch of water can cause more than $25,000 in damages.
  • 25% of all flood damage in the US occurs in low-to-moderate-risk flood zones, according to the NFIP.
  • The average NFIP claim is around $43,000.
  • Almost 40% of small businesses never reopen their doors after a flood disaster.
  • Federal Assistance will pay if my business is flooded.


  • The fact is that before an area can be eligible for assistance, a federal disaster must be declared by the President. According to NFIP, federal assistance is declared in less than 50 percent of flooding events. Even if a federal disaster is declared, most federal assistance comes in the form of low-interest disaster loans. The premium for an NFIP policy is oftentimes less expensive than federal loan repayment options. With the right policy, you’ll be reimbursed for all of your covered losses in the event of a flood.

    What flood zone is my business located?

    There are four major categories of flood zones, as defined by FEMA. For more specific information on your flood zone contact the OPP.

  • Flood zone X is a minimal risk area where flood insurance is not mandatory.
  • Flood zone D is an area that has not been studies, but flooding is still possible.
  • Flood zone A is a volatile area subject to rising waters – usually near a lake, river, stream or other body of water.
  • Flood zone V is considered a Special Flood Hazard Area and typically near the beachfront.