Why Every Business Should Consider Buying a Flood Insurance Policy

6/29/2021 (Permalink)

Purchasing flood insurance can provide peace of mind, so why delay?

No place is immune from storms that can potentially cause severe damage to your business. When a destructive storm hits, insurance policies act like financial safety nets, allowing businesses to recuperate damaged or destroyed property. However, insurance companies see flood damage and storm damage as entirely different entities that require separate policies.

Examples of Storm Damage

Wind and hail are examples of natural phenomenon that can cause significant damage to your building’s exterior infrastructure. Examples of potential damage include the following:

• Loosened or detached shingles and siding
  
• Cracked roof surfaces
  
• Broken windows
  
• Damaged or destroyed outdoor equipment
  

Heavy Rainfall and Flooding
Some severe storms bring heavy rainfall which, if not drained properly, can saturate an area and cause flood damage. To be officially classified as a flooded area, the general rule is the land must be at least two acres in size and a normally dry region. An area where two or more properties are inundated with water can also be classified as a flooded zone.
Flooding can also occur inside your building, especially if the roof or windows were compromised in a storm. In this case, the distinction between flood and storm damage comes down to when the destruction occurred. While this may sound like a minute detail, it is a crucial determination for insurance purposes.

Property Insurance vs. Flood Insurance
Not all insurance policies are created equal, and there is a distinct difference between flood insurance and business property insurance. Most property insurance policies will cover damage resulting from storms, such as damaged windows, roofs and siding. However, if the storm causes flooding and the primary culprit of the damage was flood waters, your property insurance policy will likely not be applicable. Instead, you will have to file a claim on an existing flood insurance policy. Unfortunately, not every business chooses to purchase flood insurance, creating the potential for substantial financial loss.

Purchase a Policy for Peace of Mind
When flood damage occurs, navigating the restoration and cleanup process can be challenging and timely, particularly if your business lacks adequate insurance. It’s hard to predict when the next severe storm will hit Round Rock, TX. Purchasing flood insurance can provide peace of mind, so why delay?