A separate policy must be written for flood protection, which is excluded on the Commercial Property Policy. The coverage is underwritten by the Government. “Flood” can include rising water, storm surge, tidal waves, heavy rainfall, even mud puddles. Even if your property is not classified as high risk for flood, it is not immune to flooding either. New land development can increase flood risk, especially if the construction changes natural runoff paths.
Many people think that the Government will bail them out if they experience flood damage. In reality, governmental assistance is only available in less than half of all floods, and it usually comes in the form of a loan—repayable with interest.