Does Commercial Property Cover Flood?

The Texas Department of Insurance says most commercial property policies do not cover flood damage and points businesses to a separate flood policy. Flood is also a common exclusion in special-form property coverage. The policy definition matters: surface water, overflow, storm surge, and water backing up through drains may be treated differently, and a water loss is not automatically a flood loss.

Check the property form’s flood and water exclusions, any buyback endorsement, and the separate flood policy’s building and contents limits, deductible, waiting period, and covered locations. If closure after a flood would threaten cash flow, ask whether business-income coverage follows the flood policy or is separately endorsed; do not assume the property policy’s business-income section covers an uninsured flood cause.