Does Your Business Need Commercial Flood Insurance?
Your businesses in Park Slope, NY, is not covered under a standard commercial insurance policy if it is affected by flooding. However, you can purchase special coverage for flooding in case your company ever does withstand any flood damage. Here’s some basic information on flood insurance and whether or not you will need to purchase it for your business.
Flood Insurance Coverage
If flooding in your area causes damage to your business, you will likely need to contact a water damage cleanup company to restore the damaged building and get you back in business. Without flood insurance, the cost to fix all the damages and replace any lost items will rest on your shoulders. By protecting your business with coverage in the case of a flood, the costs up to $500,000 will be taken care of in almost all situations including
Your business will also be covered for any mold damage that occurs as a result of the flooding. Any property outside your company’s business will not be covered, and you will not be compensated for money loss due to time lost during the restoration process.
Insurance Requirements in High-Risk Areas
If you don’t live in a high-risk flood area, it will be up to you to determine the risk of flooding in your area. While areas close to flood zones would be smart to look into adding flooding to their insurance policy, businesses located in areas identified as high-risk flood areas with a mortgage from an insured or federally regulated lender are the only locations required by law to purchase an extra flood insurance policy.
Flood insurance is very useful for covering the costs of damage that occurs to your business as a result of a flood. Although it is only required for businesses in high-risk areas, you should evaluate whether your building could be at risk.