No matter where your business is located, you must consider the possibility of flooding and the losses that can occur as a result. Like many business owners, you may not realize that the typical commercial property policy has a standard flood exclusion, meaning that the insurer will not pay for certain water damage. Is your business at risk?
Don’t Let an Inland Address Make You Complacent
Many of us think that flooding is limited to coastal areas. However, some of the most damaging floods can happen well inland, days after a storm makes its initial landfall. Take, for example, Pennsylvania, which has no ocean coastline. In 2004 it received more than $175 million in flood insurance payments – second only to Florida.
Regardless of where your business is located, floods can affect you. The Northeast can be affected by remnants of tropical disturbances in the summer as well as winter flooding, nor’easters and rapid spring melts. The Midwest experiences major river flooding – illustrated by the catastrophic floods of 1993 and 2010. The West Coast’s intense flooding season from November through March often results in millions of dollars in damage for its residents.
Although many floods are caused by major storms, most floods result from small, localized events, such as a typical afternoon thunderstorm. Even a few inches of water from these smaller events can cause thousands of dollars of damage as well as business interruption.
To protect your business, you must purchase a separate flood policy or flood endorsement. To assist business owners, the federal government established the The National Flood Insurance Program (NFIP) through FEMA and the Department of Homeland Security. NFIP exists to ensure your financial safety, and Insurance, Inc. works with them.
What Does Flood Insurance Cover?
Building coverage that pays for damage to your building and fixtures/machinery/equipment servicing and/or part of the building.
Contents coverage for your business property (i.e. furniture, fixtures, machinery/equipment stock and other owned business personal property).
Sandbagging and other flood prevention measures.
Clean-up reimbursement to cover the costs of cleaning your building and removing debris after a flood.
Armed with the proper information about your flood risk and protection options, you can make more informed decisions to protect your financial investments.
Call Insurance, Inc. today at 410-753-1900 and we’ll do the legwork for you.
