Flooding is the most common and costly natural disaster in the United States. Floods can occur anywhere and can be devastating. Water can destroy walls, floors, equipment, supplies, files, and much more. According to the Federal Emergency Management Agency (FEMA), 25 percent of businesses that close their doors during a flood never reopen them again. Thousands of businesses in the United States will experience a flood event this year. Yet, most commercial property insurance policies do not offer coverage for flood damage, leaving businesses at risk for significant losses.

In 1968, the U.S. Congress first created the National Flood Insurance Program (NFIP), which provides flood insurance protection from the government for damage caused by flooding. The NFIP was started, in part, as a response to the insurance industry's reluctance to provide cover for flood in "all risk" property programs. As a result, many homeowners and businesses were left without protection against this common event. The intent of the program was to reduce future flood damage through community floodplain management and to provide protection against losses resulting from a flood event.

In the years since it was first enacted, Congress has renewed or extended the program, most recently a six-month extension in March 2009 and subsequent 30-day stay through October 31, 2009. It is widely expected the government will act prior to the NFIP's expiration and continue the program in some form.

Marsh's Flood Service Center (FSC), a division of the U.S. Property Practice, is a full-service practice founded to offer clients with expertise in the placement and servicing of the insurance coverage provided by NFIP. Flood insurance from NFIP can help protect a business’s assets for a fraction of the cost of repairing or replacing them. Coverage can be purchased at competitive rates: $50,000 of coverage on a building and its contents can be secured for as little as $550 per year. In high-risk zones, coverage can be purchased for as little as $906 to $1,335 per year.

The FSC is serviced by experts in flood insurance and risk management services. In addition to their expertise in placement and servicing of NFIP programs, they are also available to assist clients with the following services: flood hazard determinations, mapping questions/concerns, flood modeling, letter of map amendment,review of existing placements, and excess coverage above the NFIP.