Understanding Flood Insurance, Requirements and Benefits for Your Business

8/14/2019 (Permalink)

Storm damage due to rain in Belton, MO

What is Flood Coverage?

Most businesses require a commercial insurance policy to operate, but not all require flood insurance, which can lead to questions of whether such a plan is necessary. Questions regarding necessity depend on location and regulation, while some businesses can operate without concern for flooding, others face the threat of floods seasonally. Therefore, to understand whether a flood policy is right for your business, you must first understand what flood coverage is and what your risks are when it comes to rising water levels.

1. Understanding Flood Coverage

Flood coverage is for instances of large-body flooding. For example, overflowing rivers, heavy rains leading to storm surges, snowmelt, broken dams, or even blocked storm drains and systems. Typically, this type of coverage kicks in when the flooding affects two acres or at least two properties.

2. Determining Risks

While flood insurance is a decent policy to have, it is not necessary for every state, city or location. There are designated flood zones throughout the country where it is wise to have this type of coverage. However, even in some flood zones, the risk of flooding is minimal, meaning that insurance is suggested but not required.

3. Knowing About Requirements

However, there are some areas of the country where flood coverage is required just like commercial policies. The requirement is often put in place by the local government to help avoid losses and financial disparity.

4. Coverage and Restoration

While some commercial policies will cover the cost of a storm remediation specialist in the Belton, MO, area, most commercial coverage is limited to rain and wind damage. Therefore, if a flood occurs and you do not have adequate coverage, the business is left to fund the restoration alone.
Flood insurance is not a requirement everywhere. However, even in places where it is not a requirement, a business may benefit from the extra protection. Contact a local specialist and discuss how to best protect your business for unexpected weather disasters.