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August 29, 2023

Understanding the Importance of Commercial Flood Insurance

It's never too late for Commercial flood insurance - COVERAGE CAN help save your customers from a lot of financial stress and devastation in the future.

The Federal Emergency Management Agency (FEMA) reports that floods stand as the most prevalent natural disaster in the nation, causing billions in annual damages.  Major flood events are getting more intense, and affecting more and more areas around the country, each passing year.

While it's best to buy beforehand, flood insurance is a valuable asset irrespective of the timing – be it before or after a storm. And given the increased frequency of events in areas not designated as flood zones, these policies should be considered even if your customers don't live or work in an area currently prone to flooding.

We asked our partners at Neptune Flood for some advice - here's their take on what's most important to know about flood insurance and how your customers can best protect themselves and their businesses.


1. Protect Their Business

Flooding is a real threat to business owners, and the damage can be extensive. They could be out of business for weeks or even months if their business is flooded. Ensure their financial stability and operations with an insurance policy that can cover their assets.

2. Flooding is More Common than You Think

High-risk flood zones aren't the sole locales susceptible to deluge. Floods materialize indiscriminately, fueled by torrential rains or breached levees. All states and an astounding 99% of U.S. counties have experienced flood events.

3. Flood Damage is Costly

The aftermath of a business flood entails extensive and costly reparations. With the mean flood damage claim surpassing $52,000, a lack of flood insurance implicates the small business owner to shoulder the entire financial burden.

4. It’s Affordable

Contrary to common belief, flood insurance through Neptune remains within financial reach. Tailoring premium plans to align with your customers economic capacity and budget is entirely feasible.

5. Protect Their Belongings

While businessowners insurance might cover losses from fire or theft, the same leniency often doesn't extend to flood-related damages. Furniture, electronics– a flooding event can obliterate thousands in commercial assets.

6. Enjoy Peace of Mind

Knowing that you’re customers are protected from the financial devastation of a flood gives you peace of mind. And your customers will sleep better at night knowing they are covered if their business is flooded.


The average cost of a flood insurance policy is between $700 to $2,000 per year. However, the insurance cost varies from business to business because of various factors discussed below. Thus, it is wise to seek expert advice from Neptune who can devise a plan that suits your customers' desired premium.

The following are factors that can affect the cost of flood insurance:

1. Business Value
The worth of their assets is a primary determinant of how much they’ll be paying for the policy. The higher the value, naturally, the more they’ll pay for the insurance.

2. Flood Risk
If they live in an area prone to floods, they’ll be paying more for the policy. The higher the risk, the more expensive the insurance. But there are still affordable options that are worth the investment through Neptune.

3. Deductible
The deductible is the amount they’ll be required to pay out of pocket before the insurance policy kicks in—the higher the deductible, the lower the insurance cost.

4. Policy Limits
The policy limit is the maximum amount your insurer will pay for damages. The higher the limit, the more they’ll pay for the insurance.

5. Replacement Cost Value
The replacement cost value is the amount of money it would take to replace or rebuild the property if damaged or destroyed. The higher the replacement cost value, the more they’ll pay for the insurance.

6. Type of Property
The type of property they have also affects the insurance cost.

7. Your Add-ons
If they want additional coverage like contents coverage or business interruption insurance, they’ll pay more for the policy.

8. Insurance Company
Finally, the insurance company they choose also affects the premium. Some companies are just more expensive than others. But that doesn’t mean they’re necessarily better. The good thing is Neptune Flood is the largest private flood insurance company that offers comprehensive coverage at the most affordable rates.

Login to the Attune Portal today to see for yourself!