Does my commercial property policy include flood insurance?

The Texas Department of Insurance describes commercial property insurance as paying to repair or replace a building and business property damaged by a fire, storm or other event covered by the policy. The guide then separates out flooding: most commercial property policies don't cover it.

The same guide says flood insurance can be bought from insurance companies that sell it or from the National Flood Insurance Program, and it directs readers to an insurance agent or FloodSmart.gov. Those are the purchase channels the Texas Department of Insurance names.

The U.S. Small Business Administration gives fire, smoke, wind and hailstorms, civil disobedience and vandalism as examples of events that commercial property insurance protects against. The list is a set of SBA examples, so it is not a statement about what any particular policy does or does not cover for flood.

The California Department of Insurance describes property insurance as covering property that is stolen, damaged or destroyed by a covered peril. It also says commercial property coverage can be sold alone or inside a Commercial Package Policy that combines coverage parts such as commercial property, general liability and commercial auto. The Texas Department of Insurance notes that many insurers offer business owner's policies that bundle multiple coverages. If you hold a bundled policy, ask your agent or insurer whether flood is addressed anywhere in it and where that is stated. The business owners policy overview gives background on bundles.

For how covered causes of loss can be organized in a property form, see Named Perils vs. Special Form in a Commercial Property Policy.

The SBA suggests thinking about which natural disasters could damage a business and whether the location is at risk from seasonal events. It also says licensed commercial insurance agents can help find policies that match business needs, and that because agents earn commissions when they sell policies, a reader should look for one interested in the business's needs.

The grid below is an optional PolicyBenchmark preparation suggestion, not a legal or insurer requirement. It organizes what a reader may want to collect before asking about a separate flood policy.

A list of buildings and contents prepared in advance supports this conversation; Business Property Insurance: Organize Your Records Before a Loss covers building one. PolicyBenchmark's business insurance quiz is a free educational assessment that turns your own answers into an editable checklist, with an on-device print/PDF option. Readers in Texas can also see the Texas business insurance guide.

Have a question about your own situation? Send it to PolicyBenchmark.