What is commercial flood insurance?

Commercial flood insurance is specialized coverage for flood damage to your restaurant, purchased separately from standard property policies through NFIP or private insurers.

What you need to know

Standard commercial property insurance explicitly excludes flood damage. If your restaurant floods from heavy rain, storm surge, or overflowing waterways, you have zero coverage without a separate flood policy.

Why it matters for restaurant owners

Flood damage is catastrophic—it destroys equipment, inventory, structures, and can force months-long closures. If your restaurant is in a flood zone, mortgage lenders will require this coverage.

Critical facts:

Even outside designated flood zones, 25% of flood claims come from low-risk areas. Policies have 30-day waiting periods, so purchase before storm season. Coverage includes building damage and contents, but there are caps on coverage amounts through NFIP ($500,000 building, $500,000 contents).