Whether from a hurricane, a broken dam, or a rising river, floods are one of the most common and most costly causes of loss. Because flood insurance is so difficult to obtain, floods are also one of the most feared causes of loss.

On May 22, Sergio Leal wrote about the problems currently facing the National Flood Insurance Program. Since most policyholders rely on the NFIP for flood coverage, this is a particularly important debate for associations located on the coast or in flood prone areas.

The NFIP has low limits on coverage, generally $250,000 for homeowners and $500,000 for commercial property owners. This is inadequate for most associations.

Recently, Zurich announced that it would begin offering excess flood insurance to residential and commercial policyholders in all 50 states. According to the carrier, coverage will be offered for property damage, additional living expenses, and business interruption.

With hurricane season beginning shortly, associations should speak with their brokers and consider supplementing existing coverage if necessary. Property damage, loss of use, and business interruption can be costly but, with the appropriate coverages, reimbursable.