Most ordinary insurance policies do not cover against earthquake damage. More
Flood Insurance for Businesses
In the event of flooding your company could be unable to operate for a period of time which could cause major loss of profit and have a devastating effect on your business. It is essential that you insure your business against water damage and purchase a comprehensive commercial or business flood insurance policy to protect you in the event of flooding.
Causes of Flooding
Flooding can be caused heavy rainfall with lakes, rivers or bodies of water overflowing. Flooding can also be caused by fast melting snow, overflowing storm drains or sewers, tidal waters or flooding to buildings after a fire. Tropical storms or hurricanes can also cause devastating flooding.
Although flooding can happen wherever you are some areas are at a higher risk than others. An area is considered high risk if there is a 1% chance of flooding annually. Even two inches of water can cause thousands of dollars worth of damage to your business premises.
Commercial Flood Coverage
It is essential that you understand your business flood insurance policy and are aware of what it does and does not cover.
A commercial flood insurance policy will cover your business property and business premises, equipment and possessions against loss or damage and will include:
- Your building and the foundations
- Damage to carpets
- Plumbing systems
- Electrical systems
- Window blinds
- Air conditioning equipment
- Water heaters
- Permanently installed cabinets, paneling, bookcases and wallboard
- Built in appliances including cooking stoves, dishwashers and refrigerators
- Electronic equipment and computers
- Portable equipment including microwaves
Commercial flood insurance premiums are calculated on a number of different factors including:
- The age of your building
- Area flood risk
- The number of floors
- Building occupancy
- Contents of your building along with the location of contents
- The location of your buildings lowest floor
Questions to ask when purchasing your commercial flood insurance policy:
- What will/won’t be covered in the event of flooding?
- Is my business property in a flood risk zone?
- In the event I need to make a claim due to flooding, who do I call?
- What is the difference between the Replacement Cost Value and the Actual Cash Value?
If the flooding is bad enough or causes significant damage the business may be required to relocate temporarily. Depending on the length of time required for the flood damage to be repaired, short term flexible business accommodation may be a more economical option than a traditional lease. Serviced office buildings and business centers will usually offer an easy-in, easy-out arrangement and the accommodation is normally fully furnished and equipped allowing you to move in and get to work the same day.
Flooding can happen to anyone, anywhere. The National Flood Insurance Program is a government agency that can provide you with up to date information, flood insurance statistics and flood hazard mapping for your area. The NFIP also provides flood insurance publications and a flood insurance library along with flood insurance workshops and training.