4 Reasons To Have a Commercial Flood Policy
4 Reasons You Should Consider Taking Out a Flood Policy
Most general commercial insurance coverage excludes damage caused by flooding. The National Flood Insurance Program or an endorsement on a private policy can cover this type of damage. Here are four reasons why commercial property owners should consider taking out a flood policy.
1. A Business Is Located On a Flood Plain
The Federal Emergency Management Agency maintains flood maps that can help business owners determine whether a commercial building is located in an area prone to flooding. Most insurance providers define a flood as water damage that originates from outside water sources such as rain or rising bodies of water.
2. A Federally-Regulated or Insured Mortgage
Owners of property located in a flood zone with mortgages regulated or insured by the federal government are required to purchase and maintain flood coverage. Contact an insurance agent that offers NFIP policies or add a flood endorsement or rider to a general commercial insurance policy.
3. Owners Want To Be Prepared
If there is any reasonable risk of flooding at a commercial building, the owner of the property may want to obtain coverage for this peril. According to FEMA, the average flood insurance claim is approximately $33,000 and total property damage due to flooding tops $6 billion every year.
4. Mold and Other Secondary Damage
In addition to excluding flooding, most standard commercial property policies also cut out coverage for any secondary damage that results from this uncovered peril. Without a flood policy, it may be more difficult or prohibitively expensive to pursue mitigation and restoration. As a result, a structure may be prone to mold growth.
Property owners should consider these reasons to obtain flood coverage for a commercial property Eastchester, NY. This commercial insurance will apply to cleanup and restoration costs for primary damage and extend to secondary damage as long as owners do everything they can to limit damage.