4 Things To Consider When Deciding on a Flood Policy
Should You Get Flood Policy?
Just last year, floods in the U.S. caused about $3.75 billion in damages, much of that to commercial properties. Nearly all commercial insurance policies do not cover flood damages, so a special policy is needed. Many business owners might not be familiar with flood insurance and what it covers so a little information on this front can come in handy. The answers to these four questions can help you decide whether or not you should get a flood policy.
1. Is Flood Insurance Necessary? Floods in the U.S. happen all of the time and for many reasons. Recently, a large flood occurred in Michigan as the result of failed dams. This caused millions of dollars of damage to homes and businesses. While most managers would never argue against having commercial insurance, sometimes decision-makers argue flood insurance is too expensive.
2. Where Is it Purchased? The most popular program is administered by FEMA under the National Flood Insurance Program. It provides affordable rates for companies seeking to purchase protection against floods.
3. What Is Covered? The NFIP offers commercial policyholders coverage of up to $500,000 for building property and up to $500,000 for personal property. More coverage can be purchased through private insurance agents in some situations.
4. What Else Is Important? In some instances, flood insurance is mandatory, particularly if you own a business in a flood zone and have a mortgage with a federally-insured lending company. To learn more, you should review the policy with a trusted insurance agent.
For many businesses, commercial insurance is not enough. If your company does experience a flood, look for the services of a local storm remediation franchise in Ninemile Corner, CO. A team of highly-trained technicians will respond quickly to the impacts of a flood. It is your company's best bet to get the mess cleaned up safely and efficiently.