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Commercial Coverage

Business Property Risk

Business Property Risk

As a business owner, you know that protecting your building and your contents is vital to its survival. Your business is either in a high-risk or moderate- to low-risk area and insurance premiums vary accordingly.

Moderate- to Low-Risk

Most commercial buildings in a moderate- to low-risk area qualify for coverage at a preferred rate. A Preferred Risk Policy provides both building and contents coverage for properties in moderate- to low-risk areas for one low price. You can also opt for Contents Only coverage, if you prefer. Commercial coverage gives you up to $500,000 of insurance to protect your building and up to $500,000 to protect its contents.

If you don't qualify for a Preferred Risk Policy, a standard rated policy is still available. Even though flood insurance isn't federally required, anyone can be financially vulnerable to floods. In fact, people outside of mapped high-risk flood areas file more than 20 percent of all National Flood Insurance Program flood insurance claims and receive one-third of Federal disaster assistance for flooding. When it's available, disaster assistance is typically a loan you must repay with interest.


If you live in a high-risk area, a standard rated policy is the only option for you. It offers separate building and contents coverage.

Flood insurance premiums are calculated based on factors such as:

  • Year of building construction
  • Building occupancy
  • Number of floors
  • The location of its contents
  • Its flood risk (i.e. its flood zone)
  • The location of the lowest floor in relation to the elevation requirement on the flood map (in newer buildings only)
  • The deductible you choose and the amount of building and contents coverage

If your commercial property is in a high-risk flood area and you have a mortgage from a federally regulated or insured lender, you are required to purchase a flood insurance policy.

Find out about Policy Rates

Learn your risk, estimate your premium and find an agent, by taking Your Risk Profile.

What's My Flood Risk?

Visit FEMA's Flood Map Service Center to locate your flood map to help determine your flood risk.

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Last Updated: Tuesday, 27-Sep-2016, 1:47 PM (EDT)

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