4 Things to Consider Before Purchasing Flood Insurance for Your Business

8/22/2019 (Permalink)

Is It Necessary For An Owner To Have Flood Coverage For His Building?

Business owners often have a slightly skewed view of looking at the world. Instead of focusing on dreams, they like to be more practical or pragmatic, meaning that they focus on the bottom line and want to keep control over the purse strings of the company. However, despite the desire to avoid expenses, some costs are necessary and even required, like commercial insurance, but what about flood insurance? Is it necessary for an owner to loosen up those purse strings for flood coverage? It depends on any of the four following factors.

1. Requirements

Some areas in the country do not give business owners, or property owners for that matter, a choice. Certain areas are designated high-risk flood zones, which means that properties, especially those with federally backed mortgages, are required to have flood coverage.

2. Risks

However, even if your business or commercial facility is located outside of one of these flood zones, it may still be in your best interest to purchase a flood insurance policy. While areas surrounding high-risk zones may not be required to purchase coverage, the risks of flooding may still be high enough to warrant the decision to purchase, especially considering that most commercial policies will not cover flood damage.

3. Coverage

Flood coverage is designed for some very specific circumstances. For example, overflowing lakes or rivers, storm surges, blocked drainage systems, or broken dams or levees are all forms of flooding that are covered by most flood policies. However, the affected area must be at least two acres or be affecting two or more properties.

4. Restoration

It is also necessary to consider the costs associated with hiring a storm remediation specialist in the Park Ridge,IL, area. While a commercial policy typically handles these expenses, the costs of such specialists are not covered by the same policy in the event of a flood.
Flood insurance is a highly specific form of coverage that is not entirely useful to everyone business everywhere. However, for those close to flood zones, it might be one of the best investments you make for your company.