Should I Purchase Flood Insurance for My Business?

4/1/2021 (Permalink)

Commercial ceiling damage in San Ysidro, CA.

Business owners in San Ysidro, CA might think that they are insured for flood damage because they have commercial insurance coverage. While your business is covered for some types of natural disasters, you need flood insurance for damage from flooding.

What Does My Standard Policy Cover?

Standard commercial insurance policies cover damage from:

• Wind
  
• Hail
  
• Tornadoes
  
• Melting snow or rain
  
  

Generally, standard policies cover damage by water that comes from above. Gutters compromised by heavy rain, for example, are usually covered in a standard policy.

What Does Flood Insurance Cover?
A flood policy covers water damage on the ground, including storm surges, blocked storm drains, melting snow, breached levees and dams, and other types of flooding. It protects you against losses from damage to your property and its contents and can cover flood damage repair.
In most cases, property outside your building is not covered. This includes septic systems, fleet vehicles and landscaping. Business interruption and loss of building use are not covered.

Do I Need Insurance From Floods?
You can determine your flood risk by searching your property address on the FEMA flood map service center. If you are in or near a flood zone, your flood risk is more significant. You may also be at greater risk for floods if your building or inventory is below ground.
If you have a mortgage from a federally insured or regulated lender and your commercial property is in an area of high flood risk, you are required to have an insurance policy for floods.

How Can I Buy Commercial Insurance for Floods?
The NFIP offers insurance coverage through a network of insurance companies and NFIP Direct. A 30-day waiting period is in effect most of the time, so it's important to plan if you're considering insurance.
Flood insurance can give you peace of mind as you know you're protected against unexpected flood damage.