She thought she had it all handled.
✔️ Commercial building? Check.
✔️ Flood insurance? Check.
✔️ Tenant paying rent on time? Check.

Then the flood hit — and everything unraveled.

When she filed the claim, she expected a headache… but not a total loss.
That’s when I had to tell her the one thing no policyholder ever wants to hear:

“Your entire claim is denied. You had the wrong policy.”

Here’s What Happened:

She owns a commercial building and leases it to a tenant.
After the flood, there was extensive damage — walls, floors, inventory, equipment. All destroyed.

She had a federal NFIP flood policy.
But her tenant was a cannabis distributor — legal in her state, licensed locally, fully compliant by state standards.

But here’s the problem:
The National Flood Insurance Program (NFIP) follows federal law.
And under federal law, cannabis isn’t recognized as a legal substance.

So even though her tenant’s business was legal in the state — it was illegal in the eyes of FEMA.
And because of that, her entire claim was denied.
Building. Contents. Loss of use.
Everything.

One Line in the Policy. One Missed Detail. Total Denial.

She didn’t know.
She thought having flood insurance meant she was protected.
She thought legality at the state level meant she was in the clear.

But the NFIP policy doesn't adjust for state law.
It doesn’t bend. It doesn’t compromise.
It simply says: no payment for businesses that violate federal law.

And that’s when she asked the question that hits hardest:

“Could this have been avoided?”

Yes — It Could’ve Been Prevented

We would’ve caught it immediately.
During a pre-flood consultation, we ask who your tenants are.
We review your policy.
We identify exposures that most property owners don’t even know to look for — like whether your tenant type is even insurable under federal coverage.

If she’d spoken to us before the flood, we would’ve helped her switch to a private flood policy that does recognize cannabis operations.
And she likely would’ve recovered hundreds of thousands in losses.

The Real Takeaway

This story isn’t about cannabis.
It’s about assumptions — and how they can destroy your payout.

Most property owners have no idea what’s actually in their policy until it’s too late.
The building is flooded. The tenant is displaced. The damage is done.
And the check… never comes.

Final Word:

It’s not about “having flood insurance.”
It’s about having the right flood insurance — and knowing exactly what it does and doesn’t cover.

If your property is in a flood zone, waiting until the water rises is too late to get it right.

💬 Want to be 100% sure your policy will actually protect you when it counts?
👉 Book a free pre-flood consultation today. One conversation could save your entire claim. [Schedule Your Call Here]