Interest among businesses in purchasing flood insurance coverage from the National Flood Insurance Program (“NFIP”) is increasing in the wake of Superstorm Sandy's heavy rain, record storm surge, and resulting widespread flood damage, according to Marsh.
Although most companies purchase commercial flood insurance through the private market, more are now inquiring about purchasing additional coverage through the NFIP, Marsh says. When used in tandem, NFIP coverage can mitigate or “buy down” large deductibles associated with commercial flood policies or simply provide additional coverage.
Under the NFIP, non-residential businesses can purchase up to $500,000 in building and $500,000 in content coverage, while residential businesses can purchase up to $250,000 in building and $100,000 in content coverage.

