7 Tips for Choosing Commercial Flood Insurance

Did you know that flooding is one of the most common natural disasters that people all over the country are affected by?

Many business owners don’t realize that even areas that are inland can be devastated by heavy rainfall and flooding.

While most standard commercial insurance policies cover some aspects of property damage, they typically exclude flood damage. To protect your business from the financial fallout of floods, it’s essential to invest in commercial flood insurance.

The process of choosing the right flood insurance may not seem complicated, but there are many factors to consider. We know you want the best for your business and we do too.

We’ve created this guide so you can find the best commercial flood insurance and protect your property.

1. Start Early

As a business owner, you have a lot of things on your mind. It’s vital that you make selecting commercial flood insurance a priority. If you wait until the last minute, you may not purchase the right coverage.

Investing in flood insurance is a big financial decision and taking your time will ensure your business is protected. By starting your search for commercial excess flood insurance early, you’ll give yourself plenty of time to find the right one.

The earlier you start your search, the more time you’ll have to read through policies and compare commercial flood insurance costs. It will also allow you to ask questions.

After selecting your insurance, you’ll be able to focus on other important tasks and you won’t have to worry about it again.

2. Assess Your Flood Risk

Before diving into the world of flood insurance, it’s crucial to assess your business’s flood risk. Factors such as location, proximity to bodies of water, historical flood data, and even elevation play a significant role in determining your level of exposure.

As you may have suspected, businesses located in high-risk flood zones will require more comprehensive coverage than those in lower-risk areas.

If you don’t know your risk or how to determine your flood insurance requirements, go to FEMA’s Flood Insurance Rate Map (FIRM). It’s a great resource that you can use to determine what you need. It’ll show you your business’s specific flood zone.

The more you know about the risk of flooding, the better you can prepare. Without this information, you could lose much money and your business could suffer.

3. Choose the Right Coverage Limits

Once you’ve evaluated your flood risk, it’s time to determine the appropriate coverage limits. This will be based on the potential cost of repairing your building. It should also include the cost of the contents.

Remember that commercial flood insurance typically covers both your building and its contents separately. It’s essential to consider each aspect when setting coverage limits.

Floods can come without warning, and underestimating their potential to do damage could cost you your business. Having inadequate coverage can be just as bad as not having any at all.

If you aren’t sure what the cost would be to replace, repair, or rebuild your property, you can always call an appraiser. They’ll be able to help you determine the costs.

4. Cover Your Clean Up

When it comes to flood insurance, you may not initially think about coverage for the clean-up process.

Commercial flood insurance typically covers the cost of property repairs and replacing damaged items. However, you need to consider the mud, dirt, and debris that’s left behind.

After a flood, you’ll be thinking about how to keep your business up and running again. You may not have the time or money to remove the water and mud that’s left behind.

Ask your insurance agent if clean-up is included and if not, you may want to up your coverage or add it to your existing policy.

5. Understand Policy Exclusions and Inclusions

Commercial flood insurance policies come with specific exclusions and inclusions that you need to be aware of. If you don’t understand the guidelines, you could leave your business vulnerable.

Common exclusions may include damage to vehicles, outdoor property, or certain types of inventory.

Inclusions can vary from policy to policy, so it’s essential to ask questions. You mustn’t assume the inclusions and exclusions.

Some may cover temporary relocation costs. This could be very beneficial if your company wants/needs to continue to operate during repairs.

The last thing you want is to call your insurance company after a flood only to find out, your policy doesn’t cover an important aspect.

6. Shop Around for the Best Rates

While commercial flood insurance is an investment, it’s important that you don’t get taken advantage of. You should shop around for rates to ensure you get the best deals and coverage.

Commercial flood insurance rates can vary widely depending on the provider and coverage.

You should also research the provider’s reputation when looking at the commercial flood insurance cost. Are they a trusted company in your community?

If not, it’s best to move on in your search.

It’s also important to remember that the cheapest option may not be the worst and the most expensive may not be the best.

7. Review Your Policy Annually

Your business’s flood insurance requirement may change over time. That’s why it’s advised that you review your policy every year before renewing.

Climate change, infrastructure developments, or FEMA flood map alterations can also affect your insurance coverage.

Discuss any changes in your business operations, location, or property value with your insurance agent. They can help you adjust your coverage limits.

Choosing Commercial Flood Insurance Tips

Purchasing commercial flood insurance may seem like a task you can push off, but it’s not. As you can see, finding the best insurance isn’t as easy as it seems. It’s time to be proactive.

Investing the time and effort into choosing the right policy now can save you significant stress and money in the long run.

Our team wants to help you protect your business. Give us a call and we’ll help answer questions you may have about flood insurance requirements.