Evaluating Your Facilities for Flood Coverage

  • Author | Aliyah Turner
  • 8/2/2021 2:00 pm

Almost every property is vulnerable to flooding from lakes, rivers or significant rain events. Regardless of where the water comes from,  damage to your facilities can impact your ability to serve the public.   

A typical property policy does not include coverage for flood, but under the PE Partners’ property and crime policy, flood coverage is offered under automatic coverages at a base level of $1 million. For members with a total insured value (TIV) of less than $1 million, the automatic coverage for flood is equal to the TIV. 

If your organization owns facilities in a high-risk flood category, you should also evaluate whether you need to purchase coverage from the National Flood Insurance Program (NFIP). For facilities that are eligible for NFIP flood coverage, PE Partners flood coverage is excess over NFIP available limits. 

In October of 2021, FEMA will introduce Risk Rating 2.0 as an update to NFIP’s risk rating method. According to FEMA, there are 27,500 NFIP residential and commercial policies in force currently in Tennessee. If you have locations in the high-risk flood category, we encourage you to consider purchasing flood coverage through NFIP.

As you evaluate your facilities, the property valuation provided by PE Partners can assist you. Each scheduled location valued at more than $100,000 is reviewed at least once every four years, and the complete property valuation report provided to each member includes relevant flood map information. You can also review flood maps directly on FEMA’s website.

This article is for informational purposes and, as always, please review all policy conditions, exclusions and endorsements. For questions about your property policy or any of the included automatic coverages, please reach out to our Underwriting Department.

East Tennessee

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