Flooding has long been the bane of any business owner’s existence. Now, with global warming making the world’s weather patterns less predictable than ever before, businesses are experiencing a great risk of having their physical property damaged–or completely destroyed–in a flood. What most business owners don’t realize is that floods are actually the number one natural disaster in the United States, and the average financial loss due to flooding is over $48,000.
Business owners with a business near water or in a location that has the potential to flood should have an excellent insurance policy to make sure than any property lost or damaged is covered in case of a flood. The tips below regarding Schaumburg flood insurance for businesses can help business owners ensure that they’re adequately prepared in case of this kind of natural disaster.
1. Many property or business policies do not include coverage in case of flooding.
Many people don’t realize it, but many (or most) traditional business or property insurance policies do not include coverage in case of a flood. It’s counter-intuitive, since flooding causes damage to the physical structure of a business, which is the exact thing that an insurance policy is supposed to cover. However, since most people who are willing to pay for added coverage in case of flooding won’t pay enough to cover the amount of money they would need for damages caused by flood, it doesn’t make sense financially for insurance companies to include coverage for floods in their standard policies. Therefore, business owners will need to invest in additional flood insurance to make sure their business is covered.
2. The government offers assistance to help protect businesses in case of flooding.
The U.S. federal government runs the National Flood Insurance Program (NFIP), which helps subsidize costs for businesses (and homeowners) in case of a flood. The government has a “Flood Hazard” boundary map that designates high flood risk areas throughout the country. They also have a “Flood Insurance Rate Map” that sets the price of flood coverage and premiums for these high-risk areas. Business owners can purchase different flood insurance policies from the government to protect the building their business is in, as well as the contents inside of it. The price will depend on the level of risk in the company’s area. It takes 30 days for a flood insurance plan to go into effect, so waiting until a flood is predicted to purchase a policy is not recommended. If a business is in an area that is at a high risk for flooding, it’ll pay to purchase coverage right off the bat.
3. Additional coverage might be needed.
While the NFIP provides coverage for damage done to physical structures due to flood waters, there are many things that the insurance does not cover, including damage done my mold or mildew, water backup from sewers or drains, financial losses due to business interruption and property outside of the insured building, such as fences, patios and swimming pools. To ensure proper protection for all of the losses that might occur in a flood, business owners should consult with an insurance agent. An agent will make sure that the business owner has adequate coverage and direct them to the right plan, if not.
If you think your business is at risk of flooding, call Prime Insurance Agency at 630-442-0282. Our agents can help make sure you’re properly covered in case of an unexpected natural disaster.