Ask The Experts: Do I Need Commercial Flood Coverage?

11/11/2020 (Permalink)

Your business owners' policy for your commercial property protects your building and its contents in a variety of situations. It's important, though, to have flood insurance, too. Having this coverage can help you pay for flood mitigation services after the next big storm comes through and causes damage to your building. Here are a few reasons why purchasing a separate flood policy is a good idea.

1. Legal Requirement

If your building is in an area that is in a flood plain, you are probably legally required to carry flood insurance on your property. Business owners in flood-prone areas who have federally insured loans on their properties must protect those properties with commercial insurance designed to cover flood damage. This not only protects your building but also lowers the risk for your lender.

2. BOP Exclusions

Any business can sustain damage from a heavy rain. If there is a weak spot in your roof, water can seep in, and your BOP policy likely covers the cost of repair. When a hurricane floods the area where your building is located, however, your standard commercial plan is not designed to cover the subsequent flooding. You need flood insurance to pay for damage remediation.

3. Secondary Damage

Ideally, all flood damage would be able to be cleaned before further damage can happen, but special circumstances can keep this from happening. The widespread destruction of a storm often taxes local resources so much that secondary damage such as mold makes the problem in your building worse. Flood coverage can not only pay for the original damage but also any related issues that occur.
It can cost a lot to repair flood damage from a storm. Purchasing a flood insurance policy for your commercial building can give you the peace of mind that, if your building is damaged during the next big flood, you are covered.

If a disaster does strike, give us a call! We are faster to any disaster and are here to help get things back to "Like it never even happened."