Buy Flood Insurance in Two Minutes or Less

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Flood Insurance for Businesses with SBA Loans

Did you know flood insurance is required by your SBA loan if you are in a high-risk zone (A & V)?

Get the best SBA Flood Insurance with Neptune

Faster Process

Faster Process

Better Pricing

Better Pricing

Better Coverage

Better Coverage

Neptune vs NFIP Comparison

 
Neptune Commercial Flood
NFIP Commercial Flood
Building Coverage
$4,000,000
$500,000
Contents Coverage
$500,000
$500,000
Additional Coverage
Yes! Business Interruption up to $25,000
N/A
Elevation Certificate (EC)
NO
Required, slow and expensive
Waiting Period
No wait on real estate closing otherwise 10 days
No wait on real estate closing otherwise 30 days

SBA Flood Insurance FAQS:

Why should I buy flood insurance from Neptune rather than the NFIP?
  1. About 90% of the time we are less expensive than the NFIP.
  2. You can find out our price in seconds rather than in days or weeks with FEMA (yes the NFIP is part of the government).
  3. Our waiting period is only 10 days not 30 - and for real estate closings we can bind insurance same day.
  4. We offer an optional business interruption insurance cover that can provide cash flow if your business is closed due to a flood.
  5. Neptune can insure your building for up to $2 million while the NFIP caps out at $500,000.
Is my bank required to accept Neptune Flood Insurance?

Yes. Neptune meets all the requirements for mandatory acceptance by banks. We include the magic language required by the law: "This policy meets the definition of private flood insurance contained in 42 U.S.C. 4012a(b)(7) and the corresponding regulation."

Does my SBA loan require flood insurance?

Short answer - if your business is in a mandatory flood zone (starting with an A or V) then yes. Longer answer from the SBA’s SOP:

  1. SBA flood insurance requirements are based on the Standard Flood Hazard Determination (FEMA Form 086-0-32). The mandatory purchase of flood insurance, as set forth by the requirements of the National Flood Insurance Program (NFIP), applies with equal force to condominium and cooperative units. Policies for such units will consist of separate policies obtained by the individual unit owner for the particular unit and the condominium or cooperative association for the exterior of the entire building.
  2. If any portion of a building that is collateral for the loan is located in a special flood hazard area, Lender must require Applicant to obtain flood insurance for the building under the NFIP.
  3. If any equipment, fixtures or inventory that is collateral for the loan (“Personal Property Collateral”) is in a building any portion of which is located in a special flood hazard area and that building is collateral for the loan, Lender must require Applicant to also obtain flood insurance for the Personal Property Collateral under the NFIP.
  4. If any Personal Property Collateral is in a building any portion of which is located in a special flood hazard area and that building is not collateral for the loan, Lender must require Applicant to obtain available flood insurance for the Personal Property Collateral. The Lender may waive this requirement when the building is not collateral for the loan if it:
    1. Uses prudent lending standards to determine that flood insurance is not economically feasible or not available; and
    2. Includes a written justification in the loan file that fully explains why flood insurance is not economically feasible or, if flood insurance is not available, the steps taken to determine that it is not available.
  5. Insurance coverage must be at least equal to the outstanding principal balance of the loan or the maximum limit of coverage made available under the National Flood Insurance Act of 1968, as amended (42 U.S.C. 4001 et seq.), whichever is less. (“Maximum limit of coverage available” is the lesser of the maximum limit available under the NFIP for the type of structure or the insurable value of the structure.)
  6. Insurance coverage must contain a MORTGAGEE CLAUSE/LENDER'S LOSS PAYABLE CLAUSE (or substantial equivalent) in favor of Lender. This clause must provide that any action or failure to act by the debtor or owner of the insured property will not invalidate the interest of Lender. The policy or endorsements must provide for at least 10 days prior written notice to Lender of policy cancellation.
What was that? How much insurance can the bank make me buy?

Generally the lesser of the amount of your loan or the NFIP limits of $500,000 for buildings and $500,000 for contents. At Neptune we will sell up to $4,000,000 for your building to properly protect you from the risk of flooding if you should so choose.

To learn more about Neptune Flood Insurance visit us at NeptuneFlood.com
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