How To Choose Flood Coverage for Your Business

11/10/2021 (Permalink)

Stormwater in a Columbia, TN business.

Flood Insurance For Your Business

The National Flood Insurance Program offers both building property and personal property flood coverage for businesses. If your business is located in an area prone to flooding, chances are that you are required to have some type of flood policy. Commercial insurance policies that are specifically designed to cover single-peril events provide protection that your general property insurance does not.

What It Covers

The main differences between building property and personal property flood insurance are the relative mobility and permanence of the damaged item or material. Items that are part of the structure or are hooked up to it in some way are usually covered under the building property policy:

• Building and its foundation
• HVAC system
• Plumbing and electrical systems
• Fire sprinkler system
• Installed design features such as carpeting or paneling
• Machinery that is a permanent part of the structure, such as a walk-in freezer
• Any apparatus attached to the outside of the building
  
  

Commercial insurance coverage for your personal property during a flood includes most items inside the structure. Furniture, appliances, rugs, inventory and equipment are typically covered under an NFIP policy through FEMA.

What It Doesn't Cover

Flood coverage is usually limited to a single event, the structure and the items within that structure. Secondary damage such as mold, which must be mitigated by mold remediation experts, is not covered under your company's flood policy. If the sewer backs up into your building, your commercial flood coverage does not pay for its cleanup, even if it was indirectly caused by flooding. Anything outside the building is not covered, and neither are the costs of keeping your business going. It's a good idea to talk to your insurance agent about adding policies that cover what the flood policies don't to your portfolio.

When your business in Columbia, TN, floods due to a storm or natural disaster, you will be glad you have a policy with the NFIP. These commercial insurance policies are designed to help make your business whole again.