3 Tips for Learning About Commercial Flood Insurance

7/13/2021 (Permalink)

Flood insurance can be a vital component of a protection plan for your business.

How and When To Use a Flood Policy

Your Placida, FL, business is likely a large investment for you, both financial and emotional, so you probably go to great lengths to protect it. Smoke detectors, security cameras and business interruption insurance might all be part of your protection plan. However, if you have not added flood insurance to this strategy, you might be facing a considerable gap in your company’s coverage. Learning the basics about how and when to use a flood policy may help you protect your business to the fullest.

1. Assess Your Risk

Before you purchase insurance, it is a good idea to gauge your building’s risk of being damaged by such an event. For example, does your company utilize an entire structure or only one floor? Which floor is it located on? Do you use the building’s basement for storage? Each of these circumstances can affect your risk factor, so you may want to ask yourself these questions before you look for a policy.

2. Know the Law

If you rent your building or are currently under a mortgage and it sits in a high-risk area, you might be required to add flood coverage onto your commercial insurance policy. Most basic policies do not include compensation in case of flooding, especially when it occurs as the result of a natural disaster. You may want to check with your lender, so you are not operating your business without the proper coverage.

3. Take Time To Prepare

Look into flood insurance before the rainy season starts, so you have coverage in plenty of time. Consider bundling this task with finding storm damage and restoration service so you can feel confident that your business is fully protected from flooding. Most policies take about 30 days to kick in, so you might want to start shopping for a policy several months before the flood season arrives.

Flood insurance can be a vital component of a protection plan for your business. Choose a policy carefully and give yourself plenty of time to look over the fine print so you can be assured you are paying for the best protection possible.