Protect Your Business With a Flood Policy

8/30/2022 (Permalink)

Storm damage to a Fort Collins commercial building.

Three Things To Know About a Commercial Flood Policy

If your business in Fort Collins, CO, becomes damaged in a flood, you could be out thousands of dollars unless you have commercial insurance to cover such losses. Most regular insurance does not cover flooding due to storms. Flood insurance can be purchased separately through The National Flood Insurance Program, which consists of around 60 providers and is managed by FEMA.

1. The Building Is Protected
Floodwater can seep in and cause all kinds of damage to different types of materials including walls, carpeting, appliances, plumbing, and electrical equipment. Luckily, commercial flood insurance usually covers all of these items and more. Coverage generally includes the main building, as well as any detached garages or other facilities.

2. The Contents Inside the Building Are Covered
In addition to the main components of the building, commercial insurance may cover less-permanent structures too. Rugs, curtains, furniture, and other valuable materials that are not part of the building may also be protected. It is a good idea to take pictures of any items before a disaster has a chance to strike. A professional restoration company can often deal with damage to important paperwork and electronics.

3. Not Everything Is Covered
A commercial flood policy does not cover items that are unrelated to the physical structure of your business. For example, cars, other vehicles, or losses incurred during a business outage are not typically covered under these policies. Most deal with flooding due to storms or broken levies but may not apply to problems of flooding originating inside the building. If you have flooding from a broken pipe or sump pump, you may need a different type of insurance for that damage.
Because just 1 inch of floodwater can cause up to $25,000 in damage, it is important to have flood insurance for your business. Read your paperwork carefully to see exactly what is covered by your commercial insurance policy.