Can Commercial Tenants Get Flood Insurance?

4/1/2022 (Permalink)

Renters policies for commercial structures tend to cut out damage caused by flooding.

Is It possible For commercial Tenants To Obtain Flood Insurance?

Renter’s insurance covers the contents of a space rented by a commercial tenant. A lessee can obtain insurance coverage that specifically applies to damage caused by flooding, which is often excluded from general commercial renters policies. The availability of National Flood Insurance Program policies varies based on the location of rented property in Miami, FL.

Renters Policies May Exclude Flood Damage
Renters policies for commercial structures tend to cut out damage caused by flooding. Exposure to contaminated water can damage or destroy any of the following high-value contents:

• Appliances and devices
• Fixtures
• Inventory

While a property owner and lessor is responsible for restoring a structure damaged by flooding, a tenant or lessee is responsible for replacing damaged contents. For this reason, it can be helpful to seek out dedicated flood coverage for commercial renters.

The NFIP Offers Renters Insurance

The NFIP is administered by FEMA. While this program does offer renter's insurance, a tenant must see whether the NFIP is available in the area in which a property is located. In general, the NFIP is more likely to be an option in designated flood zones.

Private Insurers Provide Flood Policies

If the NFIP does not offer policies that cover a rented commercial space, a business owner may want to obtain a flood policy through a private company. Check the limits and terms of any policy to ensure that it covers the costs of replacing ruined commercial contents. It may be possible to obtain a rider on a general commercial property insurance policy for rented premises or a business may have to obtain a separate policy.

Flood insurance coverage may be available through the NFIP for business owners who rent property located in a flood zone in Miami, FL. If an NFIP policy is not available, a private insurer may offer renter’s insurance for flooding in addition to general commercial insurance.