How Flood Insurance Works for Business Owners

Businesses must account for many potential mishaps, as even dedicated due diligence and robust safety precautions cannot prevent every incident. In many cases, such as when natural disasters occur, your company may be at the mercy of circumstances beyond its control. That’s why understanding appropriate insurance, such as for floods, can make all the difference.

What Is Flood Insurance?

As its name suggests, flood insurance can be a critical financial safeguard against rising waters. Whether caused by heavy rainfall, overflowing lakes and streams or broken dams and levees, flood-related damage is an essential insurance-related consideration. However, standard policies may not be enough to account for these situations and subsequent losses. Many commercial property insurance policies may explicitly exclude floods as covered perils, necessitating alternative arrangements.

What Can These Policies Cover?

Your business’s flood insurance policy may offer multifaceted financial protection. Specifically, your coverage may be composed of the following aspects:

• Building coverage can help pay for repair or rebuild costs if a flood damages the structural elements of your business’s buildings, including walls, foundations, floors, plumbing and electrical systems and attached fixtures.

• Contents coverage can offer financial aid if a flood damages, destroys or sweeps away the contents of insured buildings, such as company furniture, electronics, equipment and inventory.

Additionally, if your business requires professional assistance with cleaning up after a flood, your policy may help pay for related costs.

Where Can I Get Coverage?

Flood insurance is typically available through either the Federal Emergency Management Agency’s National Flood Insurance Program or private insurance carriers.

At Erick Dodge Insurance Agency in Longview, Texas, we can help you understand your flood-related coverage needs and find the right policy. Contact us today to begin.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.