Only partly, and only if the policy is built for it. In North Carolina's coastal counties, commercial property policies can exclude wind and hail, so the building may need a separate wind policy, often from the Coastal Property Insurance Pool. Flood is never included, and federal flood insurance stops at $500,000 for the building and $500,000 for contents.
Wind
On the coast, the wind question comes first. A commercial property policy may exclude windstorm and hail, and the building then needs a separate wind policy. The Coastal Property Insurance Pool writes commercial windstorm and hail coverage in both the beach and coastal areas, with a published limit of $4 million per building, capped at a $10 million aggregate. Larger properties may need more wind coverage above that.
The deductible
Named storm deductibles on commercial buildings are usually a percentage of the building's value, not a flat amount. On a $2 million building, a 5% deductible is $100,000. Know that number before June, and plan how the business would pay it.
Flood
Commercial property policies don't cover flood. Through the National Flood Insurance Program, a commercial building can be insured up to $500,000 and its contents up to $500,000. Buildings and inventory worth more need excess flood coverage above those limits. Contents limits matter as much as the building for a restaurant, shop or warehouse, since equipment and inventory add up quickly. An NFIP policy typically has a 30-day waiting period.
Lost income
After a storm, the bigger loss is often the weeks you can't open. Business income coverage is tied to the causes of loss your policy covers, so ask us what yours includes. FEMA lists financial losses caused by business interruption as not covered by an NFIP flood policy, so income lost to a flood needs a separate plan.
A pre-season checklist
Confirm wind is covered somewhere, by your main policy or a separate wind policy. Work out your named storm deductible in dollars. Check flood limits against the real value of the building and contents. Ask how business income responds to wind, and to flood. Then photograph the property and store the pictures off-site. We help businesses from Southport to Hampstead put that checklist together every spring.
In short
- Coastal commercial policies can exclude wind; the Coastal Property Insurance Pool writes commercial wind.
- Named storm deductibles are usually a percentage of the building's value.
- NFIP commercial flood stops at $500,000 building and $500,000 contents.
- NFIP doesn't cover business interruption, so plan for lost income separately.
Related questions
- Does homeowners insurance cover hurricane damage in NC?
- What is the Coastal Property Insurance Pool?
- What is a hurricane deductible?
- Do I need flood insurance in Wilmington NC?
Coverage pages
- North Carolina Business Insurance
- Wilmington Business Insurance
- Southport Business Insurance
- Shallotte Business Insurance
- Leland Business Insurance
Talk to us
Every situation is a little different. If you want someone to look at your own policy, call us at (910) 791-1011 or start a quote online. We're an independent, family-owned company founded in 1977, with eight offices in North Carolina, and we're licensed in North Carolina, South Carolina, Virginia and Maryland.
Sources
- NCJUA / NCIUA, Coverage Offered (FAIR Plan and Coastal Property Insurance Pool products, territories and limits)
- FEMA FloodSmart, What Flood Insurance Covers (NFIP limits; business interruption not covered; 30-day wait)
- FEMA, Flood Insurance (homeowners policies don't cover flood; 30-day waiting period and exceptions)
This page is general information, not a coverage determination or legal advice. Policies, rules and availability vary and change. Review your own policy or talk to your advisor.