Everything You Need To Know About Commercial Flood Insurance
If you own a business that is affected by a hurricane or heavy rain, you may have to spend some of your profits on repairs. Thankfully, commercial flood insurance is available to help you pay for the cost of storm cleanup and restoration services. Below is more information on this type of insurance.
What Is Covered by a Flood Policy?
This type of insurance covers flood damage that affects multiple properties or acres. Typical causes of flooding include:
- Storm surge
- Snow melt
- Blocked storm drains
- Broken levees or dams
- Overflowing streams and rivers
- Prolonged or heavy rain
A flood policy also usually covers mold growth, though there are exceptions. Your insurer may deny your claim if you failed to take steps to mitigate the damage.
What Is Not Covered by a Flood Policy?
Any areas outside your property, including septic systems and landscaping, are not covered by a flood policy. A typical policy also excludes business interruption costs and company vehicles.
How Do You Get a Flood Policy?
Your typical commercial insurance policy likely does not include flood coverage. However, you can purchase a separate policy from the National Flood Insurance Program. Simply contact an insurance professional who is familiar with NFIP policies.
How Much Coverage Do You Get?
A commercial flood policy usually includes $500,000 for the structure and $500,000 for the items inside it. If you are worried about more severe damage to your business, you can buy additional coverage.
Who Needs a Flood Policy?
Depending on where your business is located, you may be legally required to purchase a flood policy. Specifically, those who own a company in a flood-prone area must buy this type of insurance in order to obtain a mortgage from an insured or federally regulated lender.
Commercial flood insurance can protect your Richmond Highlands, WA, business following storm damage. While it may cost you extra money now, it could save you from spending money on expensive flood cleanup in the long run.