Why Your Business Needs Flood Insurance
With Proper Flood Insurance, Your Losses Will be Covered
If you own a business in Falmouth Foreside,ME, you may think that regular property insurance for your office building is sufficient. However, general commercial insurance policies, including Business Owners Policies and Commercial Package Policies, do not cover flood damage.
That is why you need to buy separate flood insurance for your building. This insurance provides coverage for flood damage, which can be caused by:
- Prolonged or heavy rains
- Broken levees or dams
- Storm surges
- Overflowing streams and rivers
- Blocked storm drains
Flood cleanup after any of these disasters can be extensive. Insurance, however, can cover the cost of replacement items and any water damage repair. In fact, if your property is in a high-risk zone, you may have to buy a flood policy as part of the terms of your mortgage.
What Isn't Covered
While a flood policy is a great way to protect your business in case of a storm, this type of insurance doesn’t cover everything. Most policies do not cover damage to septic systems, business vehicles or landscapes.
How To Get a Flood Policy
To protect your business from flood damage, you can contact a private insurer. You can also get coverage through the National Flood Insurance Program. While you cannot buy insurance from the NFIP directly, the organization can refer you to a qualified agent who can get a policy for you.
A typical flood policy usually provides $500,000 in coverage for the contents of your building and another $500,000 for the structure itself. If you think your property is worth more than this, or if you are worried about an expensive storm cleanup, you can also purchase excess coverage. Excess insurance may even compensate you for the temporary closure of your business following a flood.
Storm damage can be devastating to a commercial building. However, with proper flood insurance, your losses will be covered.