07 Aug Commercial Flood Insurance
Did you know that flood is excluded not only from homeowners’ policies but also from commercial insurance policies? Any flooding caused by fast-melting snow, an overflowing stream, or even construction runoff next to your building would not be covered by your business owner’s policy. However, separate flood insurance policies are available for both your home and your business.
What’s Included in my Flood Policy?
With a commercial flood policy, you’ll have coverage for:
Building Coverage
- Electrical & Plumbing Systems
- Furnaces & Water Heaters
- Appliances
- Permanently Installed Carpeting
- Permanently Insalled Cabinets, Paneling, and Bookcases
- Windows
- Foundation Walls, Staircases and Anchorage Systems
- Detached Garages
- Fuel Tanks, Well Tanks and Pumps
- Solar Equipment
Contents Coverage
- Personal Property (clothing, furniture)
- Curtains
- Portable & Window Air Conditioners
- Carpets (those not covered by the building coverage)
- Currency, Precious Metals, and Valuable Items
What’s Excluded in my Policy?
Your flood policy doesn’t cover all sources of water damage to the property listed above. For example, if your sump pump were to fail and you experience a backup, your flood insurance wouldn’t provide coverage. By definition, a covered flood would be one categorized as an excess of water on land that’s normally dry and affects at least two acres of land and/or two or more properties.
Does My Business Need Flood Insurance?
Ask yourself these questions to determine whether we would suggest that you have a commercial flood insurance policy.
- Is my business located in or near to a flood zone?
- Yes? Your business may be located in a zone that requires flood insurance, but even if it isn’,t that doesn’t mean a flood is only going to affect those areas that are highly likely to be affected by flooding.
- Over 20% of flood claims come from properties outside high-risk flood zones.
- Keep in mind, these claims can only be filed by those who have a policy. How many more would have been filed by people who didn’t have flood insurance when they really needed it?
- Yes? Your business may be located in a zone that requires flood insurance, but even if it isn’,t that doesn’t mean a flood is only going to affect those areas that are highly likely to be affected by flooding.
- Is my business located in an area that has cold, snowy winters and warm springs?
- Yes? Fast-melting snow is one of the top causes of commercial flooding and would be otherwise excluded from your policy.
- Is my business located in an area that experiences moderate rainfall in the spring or fall?
- Yes? Flooding due to overflowing waterbeds, dams, streams, rivers, etc. would likely be excluded by your insurance.
- Is my business located in an area prone to new construction?
- Yes? Changes in the landscape, such as new business development, can trigger a flood otherwise excluded from your coverage.
- Is my business located in an area prone to hurricanes and tropical storms?
- Yes? High winds may be covered by your insurance policy, but flooding isn’t, even if it’s caused by a storm.
The unfortunate truth is that all businesses located in Connecticut would fit at least one of the above criteria. Many would fit more than one, possibly all. Ask yourself, if you had to close your business tomorrow due to a flood, would you be able to reopen without financial assistance? If you had to close your business, even for just one week, what kind of financial losses would you experience as a result? How long would it take you to get up and running without being able to file a flood claim?
We hate to be all doom and gloom, because it really doesn’t need to be this way! Just looking into a commercial flood insurance policy isn’t going to cost you a dime with Sava. We would be more than happy to discuss your business’ risk factor for flooding, and we can get you a free, no-obligation quote for you to review. Give our office a call today!
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