What You Need To Know About Commercial Flood Insurance

7/11/2022 (Permalink)

What You Should Understand About Commercial Flood Insurance

Hurricanes and major rainstorms can cause severe flood damage to your Valley Brook, OK, commercial building. If you do not have the proper insurance coverage, you could be forced to use your business' money to pay for the repairs. Here are answers to some common questions about commercial flood insurance.

Who Needs Commercial Flood Coverage?

Just as a regular homeowners insurance policy does not usually include flood coverage, regular commercial insurance does not cover storm damage caused by flooding. If you are worried about the cost of flood cleanup, you need to purchase a separate flood policy. In fact, companies with property in high-risk flood areas must buy flood coverage for that building in order to obtain a mortgage from a federally regulated lender. Check out online flood maps to see which areas are most at risk.

What Is Covered by a Commercial Flood Policy?

A flood policy will cover flood damage caused by a variety of disasters, including storm surges, heavy rain, and melting snow. Flood insurance also covers flooding that results from flooding problems, broken dams, and blocked storm drains. The policy should cover the cost of repairs and help you pay for storm cleanup and restoration services.

However, not all water damage to your business is covered by a flood policy. Most policies do not include coverage for landscaping or vehicles. You also won't get reimbursement for loss of use or business interruption damages, unless you purchase excess coverage.

How Do I Get a Commercial Flood Policy?

Your private insurance provider may offer a flood policy. Otherwise, you can contact the National Flood Insurance Program, or NFIP. The policy typically goes into effect 30 days after you buy it. A typical policy includes $500,000 of coverage for a building structure and another $500,000 for the contents inside.

As natural disasters become more common throughout the country, you need to make sure your business is properly protected. This means purchasing a flood policy, especially if you are in a high-risk area.