Flood should not be assumed to be covered by every Commercial Property Insurance policy.

The availability and cost of flood cover can vary significantly between properties.

How can flood be treated? #

Depending on the insurer and location, flood may be:

• Included.
• Available as an optional extension.
• Subject to a specific limit.
• Subject to a higher excess.
• Restricted.
• Excluded.

The policy schedule should be checked.

Why does the location matter? #

Insurers assess factors such as:

• Flood mapping.
• Nearby rivers or waterways.
• Previous flood history.
• Property elevation.
• Local drainage.
• Building construction.
• Risk mitigation.

Two similar buildings in different locations can therefore receive very different flood terms.

Does stormwater damage count as flood? #

Not necessarily.

Insurance policies contain specific definitions distinguishing between events such as:

• Flood.
• Storm.
• Rainwater.
• Run-off.
• Escape of liquid.

The cause of the damage can determine which section of the policy applies.

What should a property owner check? #

Review:

• Whether flood is included.
• The applicable flood definition.
• The flood limit.
• Excess.
• Any location-specific restrictions.

Do not rely solely on the overall building sum insured when assessing the amount of flood protection available.