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Business Commercial Flood Insurance 
Coverage FAQs

What is a Flood Insurance Policy?

Natural disasters can be extremely destructive for companies. Whereas damages caused by some types of natural occurrences, for example, lightning or wind, is typically included in commercial property insurance coverage, getting protection from flooding requires a special policy.


To protect your business from flooding, you would need a commercial flood policy, which is administered by the National Flood Insurance Program (NFIP) either directly or through approved insurance agents in Long Island, NY.


To defend your business structure and possessions, the NFIP offers two kinds of coverage – building coverage and business property coverage.


The licensed insurance provider must stick to all standards of the NFIP regarding coverage, underwriting, premiums, and claims. Additionally, you might be able to receive flood coverage through private carriers.

What is the Definition of a Flood ?

A simple definition of a flood is an accumulation of water on normally dry land. The NFIP has a technical definition of a flood, which is as follows:

A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from any of the following:

  • Overflow of inland or tidal waters

  • Unusual and rapid accumulation or runoff of surface waters from any source

  • Mudflow, which is defined as “A river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water. Other earth movements such as landslide, slope failure, or a saturated soil mass moving by liquidity down a slope, are not mudflows.”

  • Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above

What are the Common Causes of Flooding?

Floods can have a variety of causes, and floods can occur even in areas that don’t typically flood. Some of the common causes of flood include:

  • Storm surges after hurricanes

  • Heavy rains causing flash-flooding

  • Overflowing rivers or streams

  • Broken dams or levees

  • Mudslides due to heavy rain on hills or mountainsides

  • Fast melting snow, which can cause floods when the ground is frozen and unable to absorb water

  • Blocked storm drains, which may cause a flood even with moderate rainfall

  • New urban development changes natural runoff patterns and reduces the ability of the land to drain properly

Does My Business/Commercial Property Insurance
Include Coverage for Flooding?

No. Damage from flooding, as defined in the above section, typically is not covered under a standard commercial policies, such as Commercial Package Policy (CPP) or Business Owners Policy (BOP) in New York.

What if There's a Dispute with My Claim?

Claim disputes can be stressful and emotionally difficult for policyholders. However, a licensed public adjuster can help prevent most claim disputes when brought in early. 


If a dispute does occur, an experienced public adjuster will know how to resolve it efficiently. 


In some cases, this may involve providing additional documentation or explanation. Other cases may include advocating for the policyholder through appraisal or pursuing a bad-faith lawsuit. 


Public adjusters can help resolve a variety of claim disputes, including:

  1. Lowball settlement offers: Insurance companies may try to offer policyholders a settlement significantly lower than the total value of their loss. Public adjusters can help negotiate a fair settlement on behalf of the policyholder.

  2. Lengthy delays: Insurance companies may drag out the claims process to reduce payouts. Public adjusters can help ensure that the claims process is completed efficiently and promptly.

  3. Overreaching procedural requirements: Insurance companies may try to impose unnecessary or burdensome requirements on policyholders to reduce payouts. Public adjusters can help navigate these requirements and advocate for the policyholder.

  4. Underpaid claims: Insurance companies may try to pay out less than what is owed to the policyholder. Public adjusters can help ensure that policyholders receive the full value of their claims.

  5. Wrongfully denied claims: Insurance companies may try to deny legitimate claims. Public adjusters can help policyholders prove the validity of their claim and advocate for a fair settlement.

When Shouldn't I Hire a Public Adjuster?

In certain situations, hiring a public adjuster may not be the best choice for a commercial or homeowners insurance claim. 


These include:

  • A small claim that the policyholder can handle and ensure is settled for the total value.

  • A total loss that the insurance company has agreed to pay the policy limits. 

  • A denied claim or loss for which there is no coverage (though a public adjuster should be able to determine if coverage is promised in the policy).

It's essential to consider these factors and ask relevant questions before deciding to hire a public adjuster. 


For more information on whether a public adjuster is the right choice for your situation, call Kevin Godfrey at 516-410-0164.

Why Hire a Public Adjuster and not an Attorney?

If you are considering legal action against your insurance company because your claim has become impossible to settle, hiring a property claims attorney may be the right choice. 

However, it is worth considering a public adjuster as an alternative. 

Public adjusters serve as advocates for policyholders throughout the entire claims process and can often successfully resolve claims without the need for legal action. 

A licensed public adjuster can provide you with exclusive representation and work to secure the maximum settlement possible for your claim at a substantially reduced rate. 

While attorneys in Long Island, NY, often charge 30% of the settlement and require an immediate $5,000 retainer, Public Adjusters work on a 7 - 10% contingency with no upfront costs.  

If an agreement isn't reached, public adjusters aren't entitled to any compensation. 

If you are unsure whether to hire an attorney or a public adjuster, call for a free consultation and get detailed guidance on your next best steps. 


For more information on whether a public adjuster is the right choice for your situation, call Kevin Godfrey at 516-410-0164.

How Much does a Public Adjuster Cost?

A Public adjuster's fee depends on various factors, including the complexity of the claim, the type of loss, and the amount of work that needs to be done. 

In general, public adjusters charge a percentage of the total settlement amount that is settled on behalf of the policyholder.

In Long Island, New York, the fee for a public adjuster's services may range from 5% to 12.5% of the total settlement amount, with the average fee being around 10%. 

It is important to note that these fees may vary depending on the specific circumstances of each case.

It is also worth noting that public adjusters must be licensed in the state of New York and must adhere to ethical standards set forth by the NYS Department of Financial Services. 

Policyholders should choose a reputable, licensed, and experienced public adjuster, rather than simply selecting one with the lowest fee, to ensure they receive the best representation and the highest possible settlement for their claim.

Kevin Godfrey has settled over 10,000 claims with total settlements of over $1B.  For a free consultation, call 516-410-0164 or email

Get your Free Claim Review

Long Island Public Adjusters, LLC
34 E. Main St.
Ste 347
Smithtown, NY 11787

Southampton Public Adjusters

26 Hill St.
Southampton, NY 11968

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