Courtesy of iii.org
Natural disasters can be devastating to businesses. Although damage caused by certain types of natural events – e.g. lightning or wind – usually will be covered by commercial property insurance, you will need a special insurance if you want protection against flood damage. These questions and answers will help you understand this type of coverage and determine if your business needs it.
Frequently Asked Questions About Flood Insurance
F. Does my commercial real estate insurance include flood protection?
A. No. Damage from floods, including floods generated by hurricane-generated storm surges, is not usually covered by a standard trading policy, including a commercial package policy (CPP) or a business owner policy (BOP). Flood insurance is available from the Federal Government's National Flood Insurance Program (NFIP).
F. What does flood insurance cover?
A.Flow insurance covers damage to your building and contents caused by flooding. This includes losses due to water flowing over rivers or streams, heavy or prolonged rain, storm surge, snowmelt, blocked storm drainage systems, broken ponds or dikes or other similar causes. To be considered a flood, water must cover at least two acres or affect two properties. In general, if water comes from above ̵
Q. What is not covered by flood insurance?
A. Properties outside your building are generally not covered. For example, landscaping and septic systems will not be covered. In addition, flood insurance does not cover damage to your company vehicles, but this can be included in the optional "comprehensive" part of your company vehicle insurance. Financial losses caused by business interruptions or loss of use of insured property are also not covered.
F. Do I have to buy flood insurance?
A. If your commercial property is in a high risk area and you have a mortgage from a federally regulated or insured lender, you will need to purchase flood insurance.
Fr. How do I determine my risk of flood damage?
A. Location is the most important factor in weighing your risk of flood damage. Is your business located in or near a flood zone? (Floodmap tools can be found online.) In which part of the building is your company's equipment and fixtures? Everything that is on a lower floor, for example, is at greater risk.
Fr. Where can I buy flood insurance?
A. Flood insurance is available from NFIP and some private insurers. However, NFIP coverage can only be purchased through an insurance staff. you can not buy it directly from the federal government. To find a local insurance staffer who is familiar with the National Flood Insurance Program, contact NFIP at 888-379-9531 for an agent reference.
F. How long does it take to get flood coverage?
A. There is usually a 30-day waiting period from the date of purchase before your insurance takes effect.
Fr. Does my flood policy cover mold?
A. Damage from mold and / or mildew due to floods is covered, but each case is evaluated individually. Mold / mildew conditions that existed before a flood are not covered, and after a flood, the policyholder is responsible for taking reasonable and appropriate measures to eliminate mold and mildew.
Fr. How much flood can I get?
A. Commercial flood insurance provides up to $ 500,000 coverage for your building and up to $ 500,000 for its contents.
Fr. What happens if I need more coverage?
A. You can buy what is called surplus insurance to rebuild properties that are valued across the borders of the National Flood Insurance Program (NFIP). Surpluses include protection against business interruptions.