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Fire & Water - Cleanup & Restoration

3 Reasons To Purchase Commercial Flood Insurance

5/26/2020 (Permalink)

According to FEMA, the average commercial insurance flood claim costs $90,000. Because many businesses do not have the cash reserves to absorb the cost to repair or replace flood-damaged property, it can be wise to purchase flood insurance. You may wish to purchase a flood policy in NE Hillsborough County, if one of three conditions applies:

  1. Your commercial insurance policy excludes coverage for flood damage. Most property insurance policies specifically exclude flood as a covered cause of loss. You may be able to purchase flood insurance through the National Flood Insurance Program (NFIP,) and if your business is located in a flood zone, your mortgage company may require you to do so.

  2. Your business is located in a high-risk area. Flood zones V (coastal areas) and A (near bodies of water) are considered high-risk areas for flood damage. If your property is located within one of these zones, your chances of experiencing significant flood damage are higher than average. FEMA assistance is only available to residential property owners, so if your business does not have a flood policy, you will likely have to pay the costs to repair or replace flood-damaged property out of pocket.

  3. Your business is located in an area with moderate rainfall or snowy winters. It doesn't always take torrential rainfall to cause flash flooding that can damage property. Saturated ground or inadequate drainage can lead to flooding with moderate amounts of rain. Additionally, when warm temperatures lead to snow-melt, areas with snow cover can experience flooding from the run-off.

Even businesses that are not located in a high-risk, flood area can experience flooding that requires prompt water damage remediation that may not be covered by commercial insurance. All businesses should consider their level of flood risk when making insurance purchasing decisions, however, businesses located in high-risk flood areas due to weather or proximity to water sources should be particularly aware of their flood exposure.

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