Clawson Commercial Flood Insurance Agency

Texas Flood Insurance

Many business owners are surprised to learn their commercial property policies won’t cover flooding events. That’s right: Standard commercial property insurance won’t cover flood damage.

This fact puts many Brazoria County business owners—especially those located on or near the Gulf Coast—in a difficult spot. For these businesses, adequate commercial flood insurance isn’t optional—it’s essential.

How Commercial Property Insurance Defines ‘Flooding’

If a pipe busted in your business, flooding the floor, would this be considered a “flooding event” and therefore not reimbursed by commercial property insurance? Or would this event be covered?

If you answered, “Yes, this event should be covered under my existing commercial property policy” (or something similar), you’re correct. A flooded floor or other water damage to your business caused by a busted pipe (or even a malfunctioning appliance) would probably be covered by a typical commercial property policy.

What kinds of events, then, are classified as “flooding” and are thus not covered under commercial property insurance? Obviously, a heavy rainfall event wherein water rose into your business would qualify as flooding.

However, other kinds of damage classified as “flood damage” under commercial property policies aren’t quite as apparent. In other words, your business doesn’t need to flood with rainwater to sustain “flood damage.” As specified in typical commercial property policies, flood damage also includes:

• Rain damage
• Storm surge damage
• Mud damage

It’s a guarantee that your existing commercial property policy won’t cover the above events.

Where Do I Buy Commercial Flood Insurance in Texas?

The overwhelming majority of commercial flood insurance across the US—including in Texas—is sold under the National Flood Insurance Program (NFIP). The NFIP is administered by the Federal Emergency Management Agency (FEMA).

To purchase NFIP flood insurance from FEMA, you must go through an NFIP-Direct-affiliated agency. Clawson has sold NFIP commercial flood insurance for many years.

That said, US businesses situated close to or along the John H. Chafee Coastal Barrier Resources System (CBRS)—including Texas’s Gulf Coast—aren’t eligible for NFIP Flood Insurance (CBRS). These businesses must purchase commercial flood coverage through private carriers.

Commercial Flood Insurance in Texas & the Coastal Barrier Resources Act

In 1982, the US Congress passed the Coastal Barrier Resources Act (CBRA) to help curb and prevent development along US coastal barriers. These areas are considered ecologically fragile and also present amplified risk to human life and health due to their extreme exposure to hurricanes and other extreme storms that form at sea. As such, homes, businesses and other structures built in these areas are at far greater peril compared to buildings erected further inland.

For this reason, any home or business built within the CBRS after 1982 is not eligible for flood insurance through FEMA’s NFIP. In Brazoria County, this describes many businesses in Surfside Beach.

If you own a business in Surfside Beach, and need to obtain flood insurance, there’s a good chance you aren’t eligible for coverage through the NFIP. Don’t fret. Flood Insurance is nonetheless available for these businesses through private carriers, some of whom are Clawson Insurance partners.

What types of Commercial Flood Insurance Can I Purchase Through the NFIP?

NFIP commercial flood insurance policies come in two types:

Preferred Risk Flood Insurance

These flood insurance policies are designed for businesses located in low-to-moderate risk zones. Such businesses aren’t necessarily required to purchase flood insurance but have the option in case they experience a small flood or even an unexpectedly big one.

At Clawson Insurance Agency, We Sell Commercial Flood Insurance

If you’re shopping for commercial flood insurance in Brazoria County or anywhere else in Texas, we’d be thrilled to hear from you! Whether through the NFIP or a private carrier, we’ll help you find and purchase an appropriate commercial flood insurance policy.

Got questions about flood insurance? At Clawson, we’ve got the answers you need to make informed coverage decisions! For a free commercial flood insurance quote, call Clawson Insurance Agency today at 979-849-7784! For a free online commercial flood insurance quote, fill out the quote form on this page!