Why Your Business Needs Flood Insurance

3/5/2020 (Permalink)

Floods can be devastating, but the right insurance can get you back to business

Why Your Business Needs Flood Insurance

Being prepared for disasters is part of being a responsible business owner. If you have a business in Holly Springs, NC, then you need to know about flood insurance. Emergencies don't keep schedules, so you need to have a disaster preparedness plan in place at all times. Here are some ways that flood coverage can help keep you and your business afloat during an emergency.

• Covers destruction to your building and building's contents.
• Covers mold or mildew damage caused by a flood.
• Covers losses resulting from broken water retainers, overflowing bodies of water, blocked storm drainage systems, and storm surges.
  

Flood Insurance
You may assume that your standard insurance includes coverage for floods, but this is not the case. Floods are defined as situations in which water covers at least two acres or affects two properties. Protection from flood damage requires a special and separate policy, which can be purchased from the federal government’s National Flood Insurance Program (NFIP) as well as from some private insurers. The policy will cover damage to your commercial building and the contents of your building - generally, up to $500,000 of coverage for your building and up to $500,000 for the contents. If you need additional coverage, you can buy excess insurance coverage that includes business interruption protection.

Commercial Property Insurance
Commercial insurance covers some water damage scenarios, but not floods. Your commercial policy will protect you if the water comes from above, usually. These are instances such as heavy rain or snowmelt that clogs gutters and then drips into your building. If you have a Commercial Package Policy (CPP) or a Business Owners Policy (BOP), then you do not have flood protection, so you should contact an insurance professional who is knowledgeable about these types of policies.
If your business suffers water damage, contact experts in emergency restoration as soon as possible. Floods can be devastating, but the right insurance and a good team of professionals can have you back in business as soon as possible.