When Do I Need Commercial Flood Insurance?

6/15/2018 (Permalink)

Commercial insurance covers one type of water damage, while flood insurance covers an entirely different type of water damage.

You may think you don’t need commercial flood insurance, especially if you live in a particularly dry or elevated area of Carrollton, TX. Yet you’d be surprised by the situations in which flood damage can strike, and leave you high and dry on coverage for damages. So what’s the deal with commercial insurance?

What Flood Insurance Covers

You may already have a commercial property insurance policy, but this only covers water damage related to burst pipes or other such incidents. When floods happen from storms, melting snow, hurricanes, or other natural disasters, you need a separate flood policy to cover it. This policy will cover floodwater damage to:

• Structural damage to walls, floors, and ceilings
• Fixtures
• Furniture
• Inventory
• Business property

If a flood affects your property and these items or structures are damaged, then your commercial flood policy will generally cover the cost of replacing them with comparable items up to a certain point. An insurance adjuster will make necessary determinations regarding a claim, and the amount that may be awarded in compensation.

What Flood Insurance Doesn’t Cover.

Flood insurance doesn’t cover everything, though. Your policy usually won’t cover things such as:

• Damaged currency
• Mold and mildew damage, particularly if preventable
• Economic losses due to business interruption
• Cost of temporary premises or housing
• Vehicle damage
• External property, furnishings, and décor outside the commercial building

Some of these items will be covered under a standard insurance policy for commercial properties.

So I Need Both Flood and Commercial Insurance?

Yes. Commercial insurance covers one type of water damage, while flood insurance covers an entirely different type of water damage. To be safe, especially if you live in an area prone to flooding, high levels of snow melt, or other natural disasters, you should attain both types of insurance. Many insurance companies will provide you with a quote on a package to combine the two, or discuss your options for purchasing each policy separately.

For more information, please visit us at http://www.SERVPROcarrolltontx.com/.