3 Frequently Asked Questions About Flood Insurance
Questions About Flood Insurance
One storm can have a devastating impact on your business. Your commercial property insurance policy covers damage caused by many natural disasters, including wind and lightning. However, floods following heavy rain are not typically included in these policies. To protect your company, you should thus purchase separate flood insurance.
In fact, a flood policy is mandatory for some business owners. If you purchased a mortgage from an insured or federally regulated lender, and your property's location is at a high risk of flooding, you must purchase flood coverage. Still, even if you are not legally required to buy a flood policy, the benefits of this insurance outweigh the downsides. Below are the answers to three common questions about this type of insurance.
1. What Does This Insurance Cover?
Flood coverage includes both your building and the contents inside it. A typical policy does not cover items outside your structure, including company cars and septic systems.
2. How Do You Get This Insurance?
Most commercial insurance companies do not offer flood coverage. However, you can purchase a flood policy through the National Flood Insurance Program.
You do not contact the government to get this insurance. Instead, find an insurance agent in Arcadia, OK, who can help you purchase flood coverage from the NFIP. Once you buy the policy, it usually takes one month to go into effect.
3. How Much Insurance Coverage Do You Get?
A commercial flood policy usually includes $500,000 of coverage for the contents of a building and another $500,000 for the structure. This should help you pay for water damage restoration services. If you think this amount is not sufficient, you can always purchase excess coverage.
Flood insurance is essential for any business owner. It should help you pay for repairs to your property after a storm. This way, you do not have to spend your company's hard-earned profits on restoration services.