3 Reasons Why Your Business Should Purchase a Flood Insurance Policy

6/1/2021 (Permalink)

It is often a good idea for your business to purchase additional flood insurance.

Reasons To Purchase Flood Insurance

If you own a business in North Beach, WA, you probably already have some kind of commercial insurance. However, your policy might not cover everything. Buying additional flood coverage might add to your company’s expenses, but it is often a good idea anyway. The following are some reasons why.

1. It May Be a Requirement
Sometimes, flood insurance is a requirement rather than an option. If you are located in an area that experiences flooding often, then this will probably be the case for you. It is required to purchase this extra coverage if you have a mortgage with an insured or federally regulated lender.

2. Flooding is Likely Not Included in Your Basic Insurance Plan
Even if you are not required to buy additional coverage, you may want to do so anyway. This is because flooding is usually not included with basic commercial insurance. In the event of a flood, your building could experience severe damage that will not be included in your insurance claim. This type of insurance can be helpful even in areas that do not have a high risk of flooding since the weather can be unpredictable.

3. Restoration Can Be Expensive
Without flood insurance, you will have to pay for any flood damage on your own. Because this kind of damage can be extensive and may affect many areas of your building, the cost of repairs can be high. Restoration after a flood can include rebuilding certain parts of the building, repairing or replacing damaged furniture and electronics, and removing mold growth. If you do not have coverage, this work can have a big financial impact on your business.
Because your basic insurance does not likely include floods, it is often a good idea for your business to purchase additional flood insurance. This will be a huge help if you need to hire a water damage remediation company to make repairs after a flood. Otherwise, you may be stuck paying the bill out of your company’s funds.