Did you know that just one inch of water can cause over $25,000 in damage? Many businesses suffer unexpected flood damage every year without insurance to cover it. Let’s dive into what flood insurance covers, how much it costs, and whether your business really needs it.
Does my commercial property insurance cover flood insurance?
In most cases, commercial property insurance does not cover flood damage. While it protects against events like fire, vandalism, and windstorms, flooding is typically excluded from standard policies. This means that if your business is damaged by rising water from a storm surge, heavy rain, or an overflowing river, you will be responsible for the out-of-pocket costs. Unless you have a separate flood insurance policy.
What does commercial flood insurance cover?
Flood insurance is offered through the National Flood Insurance Program (NFIP) or with private insurers depending on where you live. Coverage is split into two main parts:
Building coverage
Building property coverage helps protect the physical structure of your business and its foundation. It includes:
- Electrical and plumbing systems
- HVAC units
- Foundation walls and staircases
- Permanently installed fixtures such as carpeting and cabinets.
Personal contents coverage
Personal contents coverage covers your business’s assets inside the building, including:
- Inventory
- Equipment and machinery
- Portable appliances
- Furniture
- Business records
How much will it cost?
The cost of a commercial flood insurance policy depends on several factors. The location of your business can affect the cost. If you operate in a high-risk flood zone, then you can expect to have a higher premium than someone in a low-risk flood zone. The building elevation and construction can affect the cost. Buildings with elevated foundations are less prone to flood damage and may qualify for lower premiums. Lastly, your coverage limits, and deductible amounts affect how much your premium will be.
Is flood insurance worth it?
Many business owners falsely believe that if they are not in a high-risk flood zone, then they are safe from flooding. This is not the case. Over 25% of flood claims happen in low-risk areas. Flood insurance can protect you from paying expensive out-of-pocket costs for flood recovery.
Shield your business from the unexpected. Contact one of our experienced Avery Hall agents today at 410-742-5111 for our Salisbury office, 302-684-3413 for Milton, and 302-536-9470 for our Seaford office for a free consultation.