Does A Business Need Flood Insurance?
Flood Insurance For Your Business
Flood insurance is a useful tool to combat the risk of natural disasters, but many business owners do not understand the requirements and basics of these potentially valuable policies. Keep reading for clarification and consideration.
1. Is Insurance Necessary?
While commercial insurance is likely mandatory, coverage for flooding may only be required in some regions of the country. However, just because it is not required does not mean it is not necessary. Only you can be the judge of the necessity of this type of insurance. If your business is located in a low-lying area or an area prone to even small floods, it may be a nice addition to your policy.
2. Does Insurance Protect Against Losses?
Flood insurance may protect against losses caused by flooding. However, there may be specific requirements for that coverage to kick in. For instance, your flood policy may make a stipulate that the flooding is caused by a natural disaster, like the overflowing of lakes, rivers, or streams. Some plans may require an overflow to be a certain size before being labeled a flood. For example, many policies agree that water must cover a minimum of 2 acres or affect a minimum of 2 properties before being defined as a flood.
3. Does Insurance Cover Landscaping and Exterior Property Damage?
No, most flood policies do not cover damage done to the exterior of a property, including landscaping and septic systems. Additionally, business interruptions will likely not be covered by this type of policy. There are policies for business interruption as well as additional endorsements that can expand coverage to things like vehicles.
4. Does Insurance Cover Restoration?
Yes, if you have flood coverage, most policies will cover the costs of business restoration. While each policy is different, most will require that you receive a minimum of 3 estimates from restoration companies in St. Charles, MO, area.
While every municipality does not necessarily mandate flood insurance, it may be beneficial for business owners. Ensuring that your property is protected against every potential risk is a way to preserve and maintain operations. Right, not every business needs flood protection, but it may be worth considering.