Does My Business Need Flood Insurance?

Commercial Flood Insurance protects your business against the costs of flood damage. Take proactive steps to lower the potential cost of liability insurance claims for you and your business. Floods are the costliest natural disaster in the U.S., causing billions in damage annually to hundreds of thousands of businesses and homes. A little research on flood risk and flood insurance could save you thousands in the event of an unexpected disaster. Sutcliffe & Co, have also lived through Worcester’s flooding, so we understand the importance of specialist commercial flood insurance during such a difficult and worrying time. However, if you buy a house in a designated high-risk area and receive a mortgage loan from a federally regulated lender, by law, the lender must require the borrower to purchase and regularly renew flood insurance.

This means businesses and landlords can buy flood insurance in addition to an existing building insurance policy, perhaps to help with the large excess. We think this is unfair and recognize the importance of the British Insurance Brokers’ Association in developing a transformative commercial flood insurance scheme. We believe business and property owners should be able to buy flood insurance that is risk assessed for their individual needs, wherever they are located. Flood coverage is available to protect your commercial building and contents. to know more click this link

With the increase in severe storms, hurricanes, and extreme weather around the globe, flooding is becoming a growing threat for many businesses. Recent studies have shown the average commercial flood claim approaching $100,000, making it more important than ever for businesses, large and small, to obtain Commercial Flood Insurance. The most common and effective form of flood protection before a storm is sandbagging. The NFIP will pay up to $1,000 to reimburse the cost of placing sandbags to protect your property. In addition, Commercial Flood Insurance will also pay up to $1,000 to reimburse the cost of moving items out of danger in advance of a storm.

You get the protection you need immediately – avoiding the panic, delays, and paperwork that has accompanied flood insurance claims in the past. Main Street America Insurance offers affordable, customizable business flood insurance plans backed by the federal government’s National Flood Insurance Program. So you can be assured that your business won’t go underwater when a storm comes or a pipe breaks. While NFIP has been the most common flood insurance for decades, with the appearance of private flood insurers, the market has become a bit more competitive.

However, the policies fall within the jurisdiction of the National Flood Insurance Program. The NFIP offers two types of coverage – building coverage and business property coverage – to protect your business structure and belongings. The licensed insurance carrier must follow all guidelines of the NFIP relating to all coverage, underwriting, premiums, and claims. As a business owner, you’ll need to look at both commercial flood insurance offered through the federal National Flood Insurance Program and commercial flood insurance coverage from non-NFIP policies. The two big advantages of non-NFIP policies are that they may pay out full replacement costs, and they may include coverage for loss of business during the rebuilding phase. Flooding your commercial dwelling can be detrimental to your business.

A. Location is the most important factor for weighing your risk for flood damage. (Flood map search tools can be found online.) In what part of the building is your business’s equipment and inventory located? Anything housed on a lower floor, for instance, will be at greater risk. If a business is in a high-risk flood zone, a mortgage lender will likely require a business owner to get flood coverage before you can get a commercial loan.

Even if the landlord has a flood insurance policy, it likely only covers their interests. While floods occur in every area of the country, many property owners remain unprepared. Therefore, it is important to know what options are available to protect your assets from flood losses. The U.S. Congress established the National Flood Insurance Program in 1968.

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