Here are a few questions to consider if you are thinking of getting commercial flood insurance.
- Does the nature of my business require commercial flooding insurance
- Does the location of the business essentially need flooding insurance
- Since commercial property insurance does not cover flooding, should I give it consideration
As a business owner, it is your responsibility to ensure you are protected from any risk.
Cost of Commercial Flooding Insurance
A standard commercial flood insurance policy is based on the location, flood zone, square footage, materials used for construction.The coverage for personal and business property premiums is calculated based on the amount of damage caused by policy limits.
The amount paid is based on the location, which means that businesses located in low-risk areas will pay lower premiums than those in high-risk areas. Other factors that affect the premiums include the number of floors the building has and its age.
If a business paid more than $500,000, the best option would be to take extra coverage.
National Flood Insurance Program -NFIP, established by Congress in 1968, is provided by the federal government to cover all types of floods to protect business owners from financial loss caused by flooding.There are private companies that offer commercial flooding insurance. It is advisable to compare with one that will meet your needs.
What is Not Covered by Commercial Flood Insurance
The policy does not cover loss of property for contents that are outside of the building. Also, note that NFIP does not provide business interruption coverage. One way to mitigate this is to purchase excess commercial flood coverage, which will compensate for the business’s period.
Who should Consider Commercial Flood Insurance
In some cases, commercial flooding insurance is compulsory for businesses that operate in flood-prone areas.
Damages caused by natural disasters can cause devastating damage. Protecting your business with commercial flooding insurance ensures you get compensation should there be damages brought about by flooding.