The State of Texas has seen its share of devastation when it comes to hurricanes and damage left behind. Unfortunately living near the coastline, hurricanes are natural disasters that could mean trouble for many of our businesses. We have commercial property insurance for our businesses in the event of a loss. But similar to home insurance policies, there is no coverage under commercial property insurance for hurricane or flood damage. Let’s look at a few things to keep in mind when deciding if you should purchase business flood insurance.
As a business owner, whether you rent or own the building you agree your property should be have property insurance coverage. You insure the property for coverage when losses could occur because of fire, theft, vandalism and windstorms. The difference between commercial insurance for owners and renters is instead of insuring building, a renter’s policy covers only contents. When you purchase insurance you may have the option to insure your property for its replacement cost or actual cash value. Your property is replaced at today’s price with replacement cost coverage, whereas actual cash value takes depreciation into account. Replacement cost coverage may be higher in premium but in the event of a claim the payout may be larger.
Business Flood Insurance Coverage
Flood insurance coverage will protect your business from damages caused by rising flood water. Flood insurance will not only cover the building but also contents and assets inside. Coverage protects your property if building, floors, walls, ceilings, equipment, fixtures, furniture and inventory sustain damage from flood water. Losses covered include overflowing rivers, prolonged rain, storm surge, blocked storm drainage systems, or broken levees. Flood insurance will not cover property located outside your building such as business vehicles, landscaping and septic systems.
Consider purchasing flood insurance if your business is located in a high risk flood area or your lender requires you to do so. Keep in mind there is a 30-day waiting period on all new flood policies before it goes into effect. The coverage limit allowed by the National Flood Insurance Program (NFIP) is up to $500,000 of coverage for your building and up to $500,000 for its contents. You can also purchase excess insurance coverage to rebuild property above the value limit set by NFIP. Excess coverage includes business interruption protection to help pay for ongoing expenses when you are kept from operating your business.
Call us today to get a free flood insurance quote for your commercial property.