Commercial Flood Insurance in NJ
What would you do if your business was flooded?
Most standard commercial package policies (CPP) or business owners policies (BOP) do not cover damage from flood water. A commercial flood insurance policy in NJ is designed to cover your business for any damages caused by any and all expenses associated with flood water. This policy protects the location, which includes the materials and assets inside the dwelling of the business property.
The Facts
- 1 in 4 businesses that shut down because of a natural disaster, never reopen.
- 90% of all natural disasters involve some type of flooding.
Basic business flood coverage pays up to $500,000 to repair or replace the insured building, the electrical, plumbing, air and heating systems and installed improvements.
Commercial excess flood coverage goes above and beyond what the standard flood policy covers. This extends the limits to above $500,000 for repairs on the building and all systems.
There are two conditions to having excess commercial flood insurance in NJ:
- The standard flood insurance must be provided by the National Flood Insurance Program (NFIP) or a company that has a write your own (WYO) carrier.
- Your property must be insured for the maximum limits available from the NFIP/WYO.
Who Should Buy Flood Insurance?
Anyone who owns a business and does not have flood insurance should purchase commercial flood insurance in New Jersey. A business may not be in a flood plain, which is an area of low ground next to a river, but rain happens.
Even in extremely dry places, stranger things have happened when streets and businesses have suddenly taken on water. Flash floods, rising water, and downpours can cause damage in and on a businesses property can happen without warning.
There are places in Medford, New Jersey and in Eatontown that are located in the flood plain. If you want to check to see if your business is located in this plain, access the FEMA link online. Businesses located in this plain should have this insurance.
If you are located in a flood plain and have a mortgage on the property, you are required to carry flood insurance.
30-Day Waiting Period
When purchasing flood insurance, do not wait until a flood is predicted in the area of your business. Most insurance companies require a 30-day waiting period on new policies for flood insurance. It’s very important to purchase the needed flood insurance well before it is needed.
Mold
Does flood insurance cover mold?
Flood insurance does cover the residue and clean up from a flood, including mold. This is evaluated on a case by case basis. Usually, the policyholder is responsible for taking reasonable action to prevent mold and further damage after the flood waters have subsided.
Remember, when purchasing insurance to speak to an agent. Professional advice you can trust will help guide you through the questions and decisions to protect your company and your assets.
