Does Your Business Need Flood Insurance?

It is a question many business owners ask. How important is flood insurance? Should I protect my business from flood?  Due to worsening weather, there has been more awareness regarding floods. In fact, a recent study showed that a quarter of all businesses that close due to flood damage never open again.  

Flood insurance is not only for companies located in prime flood zones.  It may already be required if you are located in one.  In most cases a lender requires it of you.  But even if you are not in a prime flood zone, you should consider it.  In the last 50 years, all states have experienced major flood events.

To help you better decide on flood insurance, let's take a look into the basics and coverage for it.  


What is flood insurance?

Flood insurance helps you pay for the replacement or repair of your business facility.  This also includes the contents of your building as long as you are within your policy limits.  What is important is that the damage is caused by the flood, and not a pre-existing condition.  

Your next question will be, what is considered a flood?  Flood is defined as rising water.  This rising water can be caused by storms or non-stop rain, overflowing bodies of water, blocked drainage systems or the like.  Damage that is caused by this is not included in standard coverage of insurance.  

Flood insurance does not include water that comes from overhead.  For example, if heavy rains fills your gutter and it leaks into you facility, then this is not flooding.  The good news is that this should be covered by your standard policy.


Consider your location

One of the most telling indicators if you will need flood insurance is your location.  Is you facility near a body of water.  Is there a risk of it overflowing?  Is your place frequently hit by storms, hurricanes, or tornadoes?  Is your facility at the bottom floor?  Or is it located at a higher floor?  The answers to these questions will determine how important flood insurance is for you.  


Conclusion

Do you need flood insurance?  You can now better decide based on the answers you give for the questions already raised.  It will be totally up to you if your business needs the protection.  However, it is always better to be safe.  If there is a chance, even a slim one, then it can happen.  And, if there is a way for you to protect yourself and what you have worked for, shouldn't you take it?

At Insurance Services of the West LLC, we take pride in making sure that our clients are well-protected at prices they can afford. To learn more about how we can help you, please contact our agency at (425) 681-0996 or Click Here to request a free quote.

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