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Commercial Flood Insurance: Is your business protected?

Commercial Flood Insurance: ever heard of it?

We are seeing the catastrophic impact of climate change all over the world and have been warning about the increasing possibility of floods in unprecedented places. Even if your business is not located near an ocean or other large body of water, you still run the risk of having to deal with flood damage.

And as is the case with other property coverages, it is more than likely your building insurance doesn’t cover flood damage. This type of policy will need to be purchased separately. 

Commercial Flood Insurance will protect your company’s physical location and everything inside of it. As with Residential Flood Insurance, you can purchase this insurance via NFIP or from a private insurer, depending on your specific needs and conditions.

What does Commercial Flood Insurance cover?

Commercial Flood Insurance typically covers repair costs for damage to a business as a result of a flood. But it is important to know which items are specifically included in the compensation of calculated losses.

Property Coverage (building, office, etc.)

  • Electrical and hydraulic systems
  • Ovens and water heaters
  • Home appliances
  • Permanently installed carpets
  • Permanently installed cabinets, panels and shelves
  • windows
  • Foundation walls, stairs and anchor systems
  • Garages
  • Fuel tanks, well tanks and pumps
  • Solar equipment
  • Content Coverage

 Personal possessions such as clothing or furniture

  • Curtains
  • Portable and window air conditioning
  • Money, precious metals and valuable items

What won’t Commercial Flood Insurance cover?

When purchasing any insurance, it is important to pay attention to the exclusions, before you find yourself relying on non-existent protection. In the case of Flood Insurance, it is vital to understand what is considered a flood by the NFIP and the metrics used by insurers in general.

According to the NFIP, flooding is an excess of water on normally dry land that affects:

  • At least two acres of land
  • Two or more properties

If your business is damaged by a sump pump backup (which was not caused by flooding), you will not receive this compensation.

Commercial Flood Insurance does not usually cover:

  • Financial losses from business interruption
  • Commercial properties outside your building
  • Used cars for your business
  • Important documents

Fortunately, all of these exclusions can be covered with specific insurance that can be purchased. Speak with BRZ and learn about all of the coverages you can purchase to protect your company and your assets once and for all.

Who needs Commercial Flood Insurance?

As we mentioned earlier, it is impossible to be sure that you will never be hit by a flood. In recent years, we have witnessed several examples of storms that brought severe flooding into the most unexpected places.

Important data to consider:

  • Over 20% of flood claims come from properties outside of Flood Zones
  • Wildfires can alter the landscape and ground conditions in your area, so future rains can cause flash floods.
  • Storms are not the only cause of flooding. A broken dam or dike, or construction work that alters the flow of water in your area can trigger a flood.

Since there is no way to guarantee that you will never experience flooding and the tragic losses that typically follow, the best way to protect yourself is by purchasing Commercial Flood Insurance. 

The damage caused by a flood is catastrophic and can leave a company in shambles. If you want to look at it from a practical lens, you will definitely need Commercial Flood Insurance if:

  • Your business is in an area that has cold, snowy winters and hot springs. Fast-melting snow is one of the main causes of flooding.
  • Your region has a high incidence of heavy rains.
  • Your company is in a Flood Zone.
  • Your company headquarters are close to large bodies of water.
  • Floods happen in the city where your company is located, even if not in your immediate neighborhood.

Let us help make insurance a BRZ.

If you have any questions about Commercial Flood Insurance, your potential risks, or the types of coverage your company needs, our insurance agents are more than happy to help! Or get a free quote and find out the cost of a Commercial Flood Insurance policy that is tailored for your specific business.

And if you want to know more about floods, Flood Zones, the steps you can take to protect your home or business, and a whole lot more, click here to access the Flood category on our blog.

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