Commercial Flood Insurance Policy Rates

The Rock River having flooded into a business ...

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Commercial Flood Insurance Policy Rates

Commercial Flood Insurance makes good business sense, even if you don’t live in an area where it’s compulsory, what else you gonna’ do if your business ends up under water? But how much is it going to cost you? Well, let’s take a look at some “ballpark” figures, remember, these are just to give you an idea, you’re going to have to talk to your flood insurance agents to get an accurate price for your own business.

Commercial Flood Insurance Policy Rates for Moderate-to-Low Risk Areas

Preferred rates for a nonresidential flood insurance policy for business premises in moderate to low risk areas (Zones B, C and X). These two sets of figures show how much the premiums might be for buildings and contents insurance together, or alternatively for contents only (which might be all you need if you rent your business property . . . check it out).

  • $50,000 building / $50,000 contents cover – would cost between around $570 and $900 per year, depending on whether you include an enclosure or basement, with contents only flood insurance cover available for between $165 and $350-ish, depending, once again, on where your contents are located. If they’re all above ground on more than one floor then it’ll be closer to the lower price, if they’re not it will be higher, but you can’t have flood insurance for contents which are kept in the basement only . . . that’s not allowed.
  • $100,000 building / $100,00o contents – would cost between about $900 and $1500, with contents only cover available for $240 to just over $500.
  • $250,000 building / $250,000 contents – would be starting from $1,700-ish up to around $2,800, but if you only want to insure the contents for that amount it would be between $470 and just over $1000.
  • $500,000 building / $500,000 contents – is the maximum amount normally available. There are amounts in between but this is just to give you a few pointers. Anyway, this would cost you between $2,500 and $4,250 per year for building and contents, with contents only for around $850 to $1,900.

If, however, your business premises are located in Zones B, C and X but you aren’t eligible for a Preferred Risk Policy, then you’ll have to pay standard policy rates:

  • $100,000 building / $50,000 contents would cost around $1,750, alternatively $50,000 building for $420 and $50,000 contents only for $525.
  • $200,000 building / $100,000 contents would set you back just less than $2,400 per year, with $100,000 building available for $780-ish and $100,000 contents for just over $1,000.
  • $500,000 building / $500,000 contents would cost almost $5,000 per year, but if you split it it would be around $2,000 for $500,000 building flood insurance and $3,000 for the same amount of contents.

Commercial Flood Insurance Policy Rates for High Risk Areas

If your business is located in a high risk area (A Zone) then it’s very likely that commercial flood insurance is a necessity of any loan or mortgage you may have on the property. Again, these prices come in three different types, building and contents together, or building and contents separately.

  • $100,000 building / $50,000 contents would cost you somewhere in the region of $1750, $50,000 building only would be $530 with contents only for $850.
  • $200,000 building / $100,000 contents would set you back about $3,500 per year, but separately $100,000 building flood insurance would be $950 with $100,000 of contents for about $1,650.
  • £500,000 building / $500,000 contents (remember, this is usually the maximum available) would cost you almost $11,200 together, building only for $5,250 and contents only for just over $6,000.

If your business is in a high risk coastal area (V Zone) then the prices go up again . . .

  • $100,000 building / $50,000 contents would cost almost $2,300, with $50,000 of building only for $675 and content only for $1,110.
  • $200,000 building / $100,000 contents for a little less than $4,900, $100,000 building for just over $1,200 with contents only costing around $2,150.
  • $500,000 building / $500,000 contents would set you back more than a whopping $30,220, with more than $11,000 for building only and just a little more than $19,000 for the contents.

Perhaps next time you see a piece of real estate which would suit your business purposes just fine but is situated in the “V Zone”, you’ll realize why it might appear to be a little cheaper than some other premises. When the tide comes in . . .

As usual, there could be lots of clauses and optional extras to these prices, not to mention fees and other stuff. Anyway, that gives you some idea about how much it will cost you to insure your business against flooding.

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