Insurance providers are dealing with a significant surge in claims related to flood damage as the frequency of flooding events across the world continues to increase. Consequently, insurance premiums for both commercial and residential properties are on the rise, and coverage in high-risk areas is diminishing.
To help mitigate these challenges, flood experts and professional flood product companies play a crucial role in helping property owners drive their insurance costs down. They help property owners show that they’ve taken measures to safeguard their properties.
However, flood strategies must meet certain standards to qualify for a reduction in lower insurance premiums. In this article, we cover three approaches that can help you reduce your insurance expenses and, most importantly, protect your property from flooding.
Lowering Your Insurance Premium With Flood Prevention Products & Strategies
Implementing flood prevention strategies and acquiring flood products can qualify property owners for lower insurance premiums. Insurance providers often consider these risk reduction efforts when assessing premiums as a responsible and effective means of minimizing potential claims.
Simply put: insurance providers incentivize property owners who invest in flood mitigation efforts. Let’s dive deeper into three strategies that align with risk management practices.
1. Professional Flood Products
One of the biggest mistakes that property owners make is creating their own make-shift flood products (ie: boarding up windows and doors with wood slats and nails). Not only is this labor-intensive and time consuming, it is not guaranteed to work when strong flood waters arrive.
These efforts are also not up to FEMA (Federal Emergency Management Agency) standards, nor are they considered by insurance providers as products that qualify for lower insurance premiums.
FEMA has set strict guidelines to ensure these flood prevention products are effective and of high quality, promoting resilience in flood-prone areas. Adhering to FEMA standards is not only a mark of reliability but also a requirement for property owners to qualify for lower insurance rates.
Some of the best flood protection products are made of high-quality materials and are customized for the property, including:
- Flood panels
- Protection boxes
- Floor drain protection
- Equipment protection
- Compression panels
- Wind-driven and hail protection
- Water-filled flood barriers
Certified flood protection is a valuable investment that can prevent devastating flood damage and creates a safer and more resilient environment against flooding threats.
2. Elevating Your Property
FEMA establishes base flood elevation (BFE) levels, which represent the projected height floodwaters could reach during a base flood event. Property owners in flood-prone areas are encouraged to elevate their structures to or above the designated BFE to minimize the potential impact of flooding.
The process of elevating a property involves physically raising the building to a specified height, often above the anticipated flood level. The goal is to lift the structure out of harm's way, reducing the likelihood and severity of flood damage. Insurers often view elevated structures as less vulnerable to flood-related damages, and property owners who adhere to FEMA guidelines may qualify for reduced flood insurance premiums.
Beyond insurance considerations, elevating a property to FEMA's specified height contributes to community-wide resilience. It aids in minimizing the overall economic and social impact of flooding events by reducing property damage, displacement, and the strain on emergency response resources.
3. Strategic Construction
Flood protection products and height elevations are strategies intended for already-established properties that are facing increased risk of flooding. Companies and investors who are in the beginning stages of building construction have an opportunity to implement strategic construction efforts that can mitigate flood damage from the onset and build an extremely resilient property.
Strategic construction involves thoughtful planning, using elevated foundations, water-resistant materials, and effective drainage systems to protect the property from potential floods. This should be done in collaboration with flood experts, engineers, architects, and other professionals who are knowledgeable in this area.
Flood Risk America specializes in assessing and offering recommendations to manage and decrease commercial construction expenses, streamline permit approval timelines, and guide clients through Floodplain Requirements when constructing in flood-prone areas. Throughout the entire process, FRA’s commercial real estate construction consulting services are dedicated to helping you navigate regulations and implementing effective flood prevention techniques.
This includes:
- Reviewing and creating commercial flood prevention recommendations
- Flood water vulnerability assessment
- Implementing and mitigating the intrusion of potential flood waters through the architectural design process
- Analyzing specific conditions surrounding the commercial development that may directly impact flood water mitigation assessments
- Providing a cost benefit analysis of available commercial mitigation products and impact in comparison with insurance premium options resulting from specific design considerations
- Providing a better understanding of sensor commercial strategy for your site
- Reviewing, analyzing, and providing expert recommendations for storage requirements for proposed mitigation products
- Ensuring flood prevention strategies are implemented correctly allowing qualification for low insurance premium rates according to the current FEMA Flood Insurance Rate Maps (FIRM)
- Developing a commercial floodproofing design including specification of floor protection devices
- Generating a floodproofing commercial architectural design specifying floor protection devices and remediation to the existing structure
- Fabricating, installing, and monitoring commercial flood protection devices
- Representing the commercial property or development assisting to obtain the lowest premiums
- FRA Commercial Flood Proofing Certification
- Signed and sealed drawings of your commercial property and/or flood plan.
- Cost prevention calculation report
Protecting Your Property From Future Flood Events, Today
Securing your property goes beyond merely saving on insurance premiums; it involves safeguarding your home, business, and the well-being of those who inhabit it.
By implementing proactive measures such as quality flood prevention products, elevation techniques, and strategic construction, you not only reduce the financial burden through lower insurance costs but also foster a secure and resilient environment for everyone involved.