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Fire & Water - Cleanup & Restoration

Do You Need Commercial Flood Insurance?

11/12/2020 (Permalink)

Flood insurance form on a table with a book. Call your agent to find out if you are covered

Do You Need Commercial Flood Insurance?

According to recent studies, the United States has seen increasing periods of extreme weather over the last 50 years. Severe flooding is a condition that can cause costly damage to your Thornton, CO, business. Being prepared for these events can mean the difference between losing a couple of workdays and total devastation. If you are unsure whether your business needs flood insurance, this discussion may answer some questions.

Flood Risk
If your property lies in a flood-danger zone, you are probably aware of it. Owners of high-risk properties are required to purchase flood coverage. Unfortunately, with increasing flood events, even locations outside the floodplain are being affected. A little research can help you determine your property’s risk level.
Your local planning department can help you determine your risk based on their topographical standards. Your insurance company can generally provide general information about past claims in your area as well as answer your questions about supplemental flood insurance.

Conventional Business Coverage
While your commercial insurance company will not usually cover damage from flooding, they will help you if the water enters the property from above ground level. For example, if a window breaks and heavy rain enters, causing damage to your property, your policy should cover that. Internal water damage from broken pipes or appliance malfunctions would generally also be covered.

Flood Policies
Supplemental flood coverage can be a blessing if you need it. It will usually cover most of your cleanup and restoration costs if a flood does occur. You would need to purchase flood insurance from the US Government. This type of policy will cover the following conditions:

  • Storm surge from severe storms or snowmelt
  • Backed up storm-drainage systems
  • Broken dams or levees
  • Overflowing lakes or rivers
  • Broken water mains

If you decide you want a flood policy, your business insurance agent can outline coverage options and broker the purchase.
With severe storms on the rise, it may be a good time to consider your flood risk. Your commercial insurance agent and city planners are good resources for helping you decide whether you carry high enough risk to need additional coverage for your business.

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