With hurricane season approaching, FloodFlash has added a new technology-driven insurance program intended to support dealerships and rental businesses unable to get flood coverage due to high-risk locations or previous flooding.

The insurance technology company’s Dealer Open Lot program offers sensor-enabled parametric flood insurance, with a smart sensor installed on the lot or insured property that FloodFlash said ensures the parametric measures behind the policy correlate closely with actual losses.

The program can be used for any losses associated with flooding, including stock damage, relocation and business interruption, and the sensor sends claim data in the time it takes to send a text. The company said claims are paid on average within “a couple of weeks” after a flood.

“Certain sectors are underserved by existing flood carriers time and again,” FloodFlash U.S. commercial director Rich Coyle said. “One of the greatest examples of this is auto dealerships. Many insurers balk at the potential loss of car or motor-home stock that even low-level flooding can cause.

“Our new program is designed to support dealerships that have previously struggled to secure limits that would truly protect their businesses from flooding. It also rewards those businesses that are taking steps to mitigate their flood losses by aligning risk management practices with lower premiums.”

FloodFlash said the launch of Dealer Open Lot is especially timely because the 2024 hurricane season, which officially begins June 1, is projected by multiple experts to be one of the most active on record, making flooding a real concern for dealers in coastal areas and beyond.

The company noted many auto dealership inventories are stored on large, flat areas of often impermeable land, exposed to flooding, and unavoidable flood damage can lead to vehicle write-off and disruption to dealers around the country.