If you own a business in the Manatee County area, you are well aware that the threat of floods is one we all have to think about. There is literally water all around us, from the Bay and Gulf to the Manatee River. S0 whether a storm surge from a passing hurricane, or an overflow from a swollen creek during rainy season, we must always be on guard.
If you have a Business Owners Policy or Commercial Package Policy, you may think that you re protected.
However, flood insurance is almost never included in those policies, and must be purchased separately. Here are some facts you need to know about flood insurance for your business- and why it matters.
Flood Insurance FAQ
- Do I really need flood insurance? If you are in a flood zone and have a business mortgage, you likely already have a flood policy. Flood coverage is required under the terms of all federally regulated or insured mortgages. If you do not have a mortgage, it is important to realize that your property insurance does not include flood insurance. Although you may not be required to have this insurance, flood damage caused by hurricanes, tropical storms, or even a severe thunderstorm will not be covered should it occur. Everyone in this area should consider flood insurance, especially those located close by or within FEMA flood zones.
- What does flood insurance cover? This type of insurance is necessary to claim payments for damage to your building – including building contents – caused by flood waters. This could include water damage from heavy rains, blocked drainage systems, storm surges due to major storms, or overflowing rivers. Usually, a commercial policy will provide up to $500,000 for building coverage, and an additional $500,000 for building contents.
- What constitutes a flood? A “flood” is generally defined as water which affects 2 or more acres, or two or more properties. Water which intrudes “from above”, such as a leaky roof, is most likely covered by your standard commercial coverage.Remember: If you do not have flood insurance and you sustain building or content damage from a flood situation, your coverage will not pay!
- What is excluded from my flood insurance coverage? Anything external to your building is generally not recoverable, such as damage to your landscaping and grounds, or to your company vehicles. You also cannot claim financial losses caused by the flood under your flood coverage – however, these should be covered under your business policy.
- Is mold remediation covered? Mold and mildew remediation will be covered if it is determined that this incident was the cause of the mold. Previous mold damage may not be covered. Business owners are expected to take swift action after a flood to mitigate the growth of mold as much as possible.
- Where can I get flood insurance? The federal government offers coverage through their national program NFIP. However, you must obtain coverage through an insurance company or broker – this coverage cannot be purchased directly from the government.
- What if I need more coverage? You can purchase excess coverage through your business insurance company. This special flood insurance policy does include business interruption insurance as well.
Anderson & Associates Insurance Group can help you to determine the proper levels of business insurance and flood insurance for your company. Don’t leave your business success up to chance – give us a call today to obtain the best insurance for your Sarasota business needs.
