Commercial Flood Insurance
Not only people fall victim to Hurricanes, but businesses too. It is important to know that damage caused by a flood is not covered by a standard commercial property insurance policy. Since 25% of businesses do not reopen after a flood and even so, the recovery is slow; flood insurance is the best way of protecting yourself from devastation after a storm.
Consider This For Your Flood Insurance
1) What is Covered?
Most business flood insurance will cover damage that is directly related to a flood. This includes both building property and personal contents property. The best flood insurance will cover the following under building property: the foundation, electrical and plumbing systems, paneling, wallboard, book cases, carpet, built-in appliances, air conditioning equipment, window blinds, garages, re-painting and debris removal. The following should be covered under personal property: furniture, portable appliances, clothing, certain artwork and carpet not included under building coverage. A good flood insurance will also cover preventive measures, such as sandbagging, you might take when there is a flood warning.
2) What is the deductible?
Of course, this depends on the type of flood insurance you buy and similar to home insurance, the higher your deducible is, the lower your premium will be. Most flood insurances have two deductibles that apply separately from the building and personal property.
3) What is not covered?
Along with knowing what is covered in your flood insurance, you must caution yourself to what is not covered. Flooding that is a result of such events like sewer backup is not covered by flood insurance unless it is a result from a flood. Damage caused by moisture, mildew or mold is not covered if the insurance claims it could have been avoided by the property owner. Usually it is safe to say: If the damage is directly related to the flood, it is covered. But, always read through your policy carefully.
If your business is in a high-risk area, it will be required for the owner to have flood insurance on the property. On average, a commercial policy cost $650 per year and can save you thousands more in the case of a flood.
To learn more about flood insurance policies and how to best protect your business, please contact the experienced attorneys at The Byrd Law Firm for consultation.
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