With Hurricane Florence approaching, we're giving a quick refresher on commerical flood insurance and how it protects your business and its contents from loss due to flooding.
STANDARD POLICIES DON'T COVER FLOOD CAUSED BY RISING WATER
Your standard Commercial Package Policy or Business Owners Policy does not cover flood damage. Refer to your Summary of Coverage or ask us to help you better understand the policy and coverage.
Standard commerical property insurance generally covers water coming down from above-for instance from a leaky roof or from snowmelt, overflowing gutters, and destroying your inventory.
COMMERCIAL FLOOD INSURANCE PROTECTS AGAINST WATER FROM BELOW
Commercial flood insurance protects property owners from losses due to water damage coming from rising water. Policies cover damages from overflowing storm drains, rising rivers, or storm surges-even if it isn't a federally declared disaster.
Flood insurance does not generally cover damages caused by earth movement (like a sinkhole or mudflow), even if caused by a flood.
RISK FACTORS FOR LOSS
Location is the most important factor for weighing your risk for flood damage.
Search the FEMA Flood Map to determine your business' risk of flooding.
Zones labeled B, C, or X represent moderate to low risk areas. Even low-risk areas flood with sudden heavy rain or storm surge
The letters A or V represent the highest risk Special Flood Hazard Areas
Areas labeled with the letter Z have undetermined flood risk
You must have a flood insurance policy if your business is in a high-risk flood area and you have a mortgage from a federally regulated or insured lender.
OBTAINING COMMERICAL FLOOD INSURANCE
A commercial flood insurance policy does not take effect until 30 days after purchase.
Once a flood alert is declared in your area, it is too late to buy a policy.
Commerical flood insurance comes from FEMA's National Flood Insurance Program (NFIP) or private insurers. You cannot purchase coverage directly from the federal government. You must purchase NFIP coverage through an insurance professional.
Professional Risk Associates cares about your safety and the safety of your practice. We advise everyone to stay informed on the latest with Hurricane Florence through their local authorities to protect themselves. In the event of a claim, you can report damages directly to your carrier. You can also look here for tips on hurricane preparedness.
If you are interested in obtaining flood insurance for your property to protect against future storms, please contact us at (800) 318-9930 and we can assistant you with finding coverage. Please remember the 30 day waiting period.