One day you are operating at full speed. The next day, you wonder if you’ll ever reopen the doors. Some events, such as wind or lightning, are usually covered by commercial property. However, you need special insurance for flood damage protection.
Assessing damages the day after is not the time to find out you do not have flood insurance Seffner FL. Understand what you have now and how to add the protection you need to restore your business.
Commercial Property Insurance Doesn’t Include Flood Coverage
Flood damage, including the destruction left behind by a hurricane, is typically not covered under the standard commercial insurance you bought. Whether you have a Business Owners Policy or Commercial Package Policy, these are not enough to help you recoup losses from a storm surge.
To be eligible for this type of coverage, your business must be located in an area that participates in the National Flood Insurance Program. This makes you eligible for federal funding. With most policies, there is a 30 day waiting period before coverage takes effect. Therefore, you want to buy what you need before a storm or hurricane appears in the weather forecast.
What Flood Insurance Covers
Equally important to buying a policy ASAP is not making assumptions about what your coverage includes. Typically, any damage to the building where your business operates and its contents are covered.
The types of water damage flooding covered include:
- Heavy or prolonged rain
- Blocked storm drain systems
- Broken levees or dams
- Overflowing streams or rivers
What Flood Insurance Doesn’t Cover
Any business property outside the building where you operate is usually not covered by flood insurance. Additionally, this type of insurance does not covered damaged business vehicles. You can, however, recoup the loss if you have comprehensive vehicle insurance.
After a flood, it is nearly impossible to keep doing business as usual. Suffering financial losses from business interruption is inevitable, but will not be covered. Productivity and sales will suffer, but you will need a separate strategy to overcome that challenge.
There are a number of determining factors in how much this policy will cost. For example, an area prone to flooding receives higher marks. Still, letting flood coverage lapse should not be an option. The cost of having insurance coverage for flood damage is immeasurable when you consider a greater loss without it.