How to Get Flood Protection

5/8/2019 (Permalink)

How to Get Flood Protection

Many business owners in Chicago,IL, don't know what parts of their property are covered by their existing policy. In order to protect all the components your company needs to stay up and running after flood damage, you may require a separate flood insurance policy.

1. Agencies

The National Flood Insurance Program is a system through which individual insurers partner with the federal government to offer valuable commercial insurance policies to business owners seeking to protect themselves against water damage. These contracts are different from the typical mandated property insurance. If your workplace is located in a designated high-risk area, you may be legally required by your lender or local laws to have a flood policy.

2. Activation

Note that like many other insurance types, any flood policy you purchase will require an activation period of thirty days before it comes into full effect. Do not wait until inclement weather is hovering around your area to browse insurers or to implement an emergency action plan.

3. Definitions

A weather event is only considered a flood if water is covering the ground for at least two acres around the property. Other forms of water or storm damage are not automatically related to flooding if they don't directly result from accumulated ground water.

4. Coverage

Your core property insurance package will cover many forms of wind and storm damage. If hail breaks a shingle or wind removes roof flashing, standard property insurance will pay for repairs. However, any specific flood damage or side effects from that flooding fall under your flood insurance. For example, mold in an inundated basement should be removed and sterilized by a qualified flood cleanup professional. If you have a flood policy, your adjuster will review your claim and the insurer will compensate you for the cleanup process.

Keep in mind the differences between standard commercial policies and flood insurance. Prevent gaps in your coverage by reviewing both types of policy and keeping all relevant documents up-to-date.