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Flood Insurance for Businesses

Monday, June 1st, 2020

We recently shared some of our top tips for preventing floods in commercial properties. We touched on the importance of having comprehensive business insurance in place to protect you from damage, but today we’re going to discuss flood insurance for businesses in greater detail.

So, what kind of insurance would your business have in place if it were damaged by a flood? Unfortunately, a lot of business owners assume their regular business insurance would apply to flood damage. But the truth is, many insurance policies actually exclude flood damage. 

Flood insurance for businesses

To make sure they have the right coverage in place, businesses might want to consider purchasing commercial flood insurance through the National Flood Insurance Program (NFIP).

Here are some other things you should know about commercial flood insurance. 

What is covered by commercial flood insurance?

This coverage applies to the physical structure of your building, as well as the contents (including your inventory and equipment) inside of it. 

What doesn’t commercial flood insurance cover?

Most of the things outside of your property (think signage, septic systems, and landscaping) likely won’t be covered by flood insurance. On that some note, business interruption insurance isn’t included in your flood insurance. So if your business is interrupted by flood damage, you’ll need to have separate business interruption coverage.

Is flood insurance legally required?

There are some situations when you’ll need to purchase flood insurance for your business. This includes when your business is located in a high-risk flood area and you have a mortgage from an insured or federally regulated lender. 

What are the commercial flood policy limits?

Business owners can purchase flood insurance with up to $500,000 in coverage for their building. This is in addition to $500,000 of coverage for its contents.

Does commercial flood insurance cover mold? 

According to FEMA, damage caused by moisture, mildew, or mold that could have been avoided by the property owner is not covered by flood insurance. Additionally, damage caused by sewer or drain backup isn’t covered unless there’s a flood in the area that caused the backup. 
Would you like to hear more about the commercial insurance options for your small business? Get in touch with Fargo Moorhead Insurance today!

Preventing Floods in Commercial Properties

Monday, April 6th, 2020

Do you own a commercial property? As a business owner, you need to be prepared for flooding and other disastrous events your business could face. 

Unfortunately, commercial properties can be especially vulnerable to flooding, especially if they are left unattended for long periods of time. Once commercial properties are flooded, you risk major financial losses. These losses can result not only from structural issues, but also from merchandise, inventory, and other property being damaged. 

Luckily, with the help of business insurance and flood insurance you can help protect yourself from many of these losses. 

But taking steps to prevent floods—or at least extensive flood damage—from happening in the first place is a crucial part of protecting your commercial property. 

Here are some of the steps you can take to prevent water damage in your commercial property.

Add water sensors 

These handy devices can alert you right away if there’s water on the floor or in other areas of your commercial property. They can alert you via your smartphone device immediately, so even if you’re away from the property, you can put a plan into place for dealing with the flooding right away. Basic devices can cost less than $10, but you can also purchase more advanced technology if you’d like. 

Waterproof important documents 

Using waterproof boxes to store essential physical documents you need to have on hand at your business AND your home is always recommened. Whenever possible, be sure to keep extra copies in secure secondary locations too. 

Have a plan in place

Flooding tends to come on suddenly, so having a plan in place ahead of time is the best course of action. Make sure your employees know exactly what to do with sensitive documents and equipment if your property starts flooding. Inform them about who they should call and any other steps they should follow at the same time. 

Are you interested in learning about all of your commercial insurance options for protecting your business? Give Fargo Moorhead Insurance a call today so we can help find the right coverage for you!