Why Do I Need Commercial Flood Insurance?

8/20/2018 (Permalink)

Primarily depending on the location of your business in Carrollton, TX, you may be federally mandated to buy flood insurance.

Expenditures are plentiful when you are a business owner in Carrollton, TX. However, you feel confident that the commercial insurance plan you have will cover your property and contents in a disaster. What about flood insurance? Is it mandatory? What are the benefits?

Mandatory Flood Insurance

There are times when you must purchase insurance coverage for potential flooding at your place of business:

• If your commercial property is located in a high-risk flood area, your mortgage company may require you to obtain this insurance.
• Flood zone maps designate which areas are low or high risk. When maps are rezoned, your business designation may change. The mortgage lender may notify you if your property is now in a high-risk flood zone, which requires purchasing of additional insurance.
• At times, mortgage companies require insurance against flooding regardless of the flood zone.

Benefits of Insurance for Flooding

Flooding happens in areas regardless of risk level. Even if you are not mandated to insure your commercial property from floods, it is still a good idea:

• A basic commercial insurance policy does not typically cover floodwater. If water damage is not covered, you will probably have to pay a significant amount out of pocket.
• Even though there are federal programs in place to assist you in the event of a declared disaster, the money is not designed to fully cover complete restoration. Insurance can provide funds to restore your property to preflood condition.
• The water restoration specialist and your insurance agent can partner with you to seamlessly and efficiently get your business up and running after a flood.

Primarily depending on the location of your business in Carrollton, TX, you may be federally mandated to buy flood insurance. If you are not required to, it still makes good business sense to include it as a component of your commercial insurance policy. That way, you can be confident that your property is covered in the unfortunate event of flooding and water damage. For more information, visit http://www.SERVPROcarrolltontx.com/.