Evaluating the Importance of Commercial Flood Insurance
Commercial Flood Insurance
Owning a business is a big financial investment. While a variety of insurance policies can safeguard an owner’s property and financial security, many managers and executives in Nashboro Village, TN, may fail to recognize the importance of flood insurance. Three key points can help you evaluate your flood risk and make an informed decision about this essential coverage.
1. Understanding Flood Damage
Floodwaters can cause significant destruction. In addition to destroying equipment and internal infrastructure, water inundation can also increase the risk of mold contamination. Unfortunately, most commercial property policies do not cover flood damage restoration. Without insurance, funding out-of-pocket cleanup and repair costs can quickly overwhelm your budget.
2. Evaluating Your Risk
Your location plays a key role in determining your flood risk. Even if your area is considered low-risk, purchasing flood insurance may still be a wise decision. Severe storms can sometimes be unpredictable. Hurricanes Katrina and Harvey illustrated, for example, that powerful storms can threaten the stability of levees and other water control mechanisms and cause torrential rainfall farther inland. As a result, businesses in Nashboro Village, TN, may be more vulnerable than they realize.
3. Recognizing Coverage Details
An active flood policy typically covers destruction to your building and its contents. To qualify, floodwaters must cover at least two acres or affect two or more properties. Damage caused by broken pipes or leaking roofs usually fall under standard property insurance.
Like other policies, flood coverage often has exclusions. For example, infrastructure and property outside of your building, such as company vehicles, may not be covered. In addition, coverage often excludes compensation for any financial losses resulting from downtime. To safeguard against these scenarios, you should review your property and business income protection plans.
Commercial insurance plays a valuable role in any business’ long-term viability. Because few policies are truly comprehensive, it’s important for every business owner to evaluate risks that may jeopardize his or her financial security. For enhanced peace of mind, flood insurance is an important coverage that everyone should consider.