Do Businesses Need Flood Insurance?

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Natural disasters are usually devastating and can affect many businesses. Flood insurance may be the most interesting solution that can help many business owners during disasters. 

Minor damages caused by some natural events like wind, hail, or lightning are usually covered with commercial insurance. Flood damage is a bit different because this may require you to have a flood insurance policy to protect your business.

Devastating hurricanes and heavy rainfalls can immediately trigger flooding. It might be good for a business owner to have flood insurance. This insurance is necessary, especially if you live in a high-risk flood zone. Remember that floods also devastate inland areas, besides many coastal areas.

1. Commercial Building Coverage
   It will cover the protection of your building if it has physical damage. Aside from businesses, the same coverage applies to non-residential property owners.
2. Property Contents Coverage
   Your insurance policy may cover your personal belongings and other things under a certain agreement.
3. Cost Replacement Coverage
   This coverage may help you reimburse the cost of replacement if necessary. The insurance provider will assess the approval.

Flood insurance may cover the damages to your building caused by the flood. Here are some of the usual natural disasters that can damage your commercial property:

• Storm surge
• Heavy rainfalls
• Broken water dams
• Melting snow
• Blocked drainage systems

Any property outside your building is not part of the insurance coverage. Even if you have a beautifully landscaped garden, your policy does not cover this. Damaged commercial vehicles are not part of the coverage also. Flood insurance does not cover any financial loss due to business closure during the disaster.

Flood insurance may cover your commercial property against heavy flooding. They consider this coverage as a "single peril" policy. The policies offered by National Flood Insurance Program (NFIP) cover devastating floods due to natural calamities.

Regarding insurance limits, flood insurance may cover the maximum amount for sustained damages. If a policyholder meets the losses more than the policy limit, the insurer might not take responsibility. Based on the data of NFIP, commercial buildings may claim up to $500,000 and $250,000 for residential properties.

At Brad Spurgeon Insurance Agency Inc., we do our best to make sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (409) 945-4746 or Click Here to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!