Flood Coverage

6/14/2019 (Permalink)

When you purchase your commercial insurance package, you probably don't think about getting extra coverage for specific damage to your building in other area that may occur if a powerful storm hits. Your property insurance, however, is unlikely to protect you if your building needs services for damage caused by floodwaters. Flood insurance provides extra support if your commercial property is damaged by a natural flooding disaster.

Property policies usually only cover damage that occurs as the result of an internal cause. For example, if a pipe bursts or a fire breaks out, your property insurance is likely to pay for the repairs you need. Flood coverage is necessary, however, when the water damage is the result of an external cause, such as a thunderstorm, hurricane or water main break. If you live in a Special Hazard Flood Area or an area particularly prone to flooding, you may be required by law to have a separate flood policy. Even if you don't live in a flood plain, if your area experiences seasons of heavy rainfall or snow, it is advisable to build extra protection into your commercial insurance portfolio.