Does My Business Need Flood Insurance?
Could My Business Benefit from Flood Insurance?
As a business owner in California, you may not even consider the possibility of your business getting flooded. Although several inches of rain is not common in California, it does happen. The reality is that any business can get flooded. Since most business insurance policies exclude flood damage, it’s wise to consider obtaining a separate flood insurance policy to protect your business from any flood risk.
What does flood insurance cover?
Flood insurance is designed to help businesses recover from flood damage, no matter how severe or minor. It will cover damage to buildings, air conditioning/heating systems, electrics, plumbing, carpeting, and major appliances. Flood coverage is typically excluded from commercial insurance policies and BOPs because it is considered a mass-destruction event.
Does every business need flood insurance coverage?
For most businesses, flood insurance is a good policy to have. Unless your business is located in a flood risk zone, coverage is optional. FEMA puts out Flood Insurance Rate Maps (FIRMs) that will let you know if you’re in Special Flood Hazard Areas. If your business is located in one of these places, you might qualify for a referred Risk Policy (PRP). Fortunately, most business owners that wish to insure their flood risks can obtain a policy through the National Flood Insurance Program (NFIP).
Even if your business is outside of a flood zone, still consider coverage. Unless you could handle the expenses of flood damage, obtaining a policy is a smart move to make. Keep in mind that you can’t wait until a storm is predicted on the weather forecast since most flood insurance policies take 30 days to kick into effect.
To find the right business insurance and flood insurance to meet your needs, contact the experts at Little & Sons Insurance Services. Serving Banning and the surrounding cities in California, we are ready to assist you with all your policy needs.