Business owners in California may not face natural disasters like hurricanes, but that doesn’t mean that they should overlook flood insurance. Many entrepreneurs in this state don’t think about flood insurance until it’s too late.
Flood damage is usually excluded from standard property policies, which means that there won’t be any coverage for water in the building as part of that policy. A separate flood insurance policy offers some protection, but it’s still not the same as full financial protection for every loss that comes with a flood.
What does NFIP coverage include?
The National Flood Insurance Program offers commercial flood coverage, but it has specific limits. Commercial policies can provide up to $500,000 for contents of the building and up to the same amount for the building itself. These amounts may seem like they’re high, but expenses after a flood can add up quickly.
Repairing or rebuilding the damaged building will be costly, and that’s a widely known fact. The contents coverage is what most business owners need without realizing they need it. This can cover things like inventory, supplies, computers, tools, computers, files and machinery within the building.
Even when a business owner has building and contents coverage, it can be challenging to get these benefits. In many cases, the insurance company may ask for records that show what was damaged and the value of those items.
What else do business owners have to worry about?
Business owners will usually have interruptions to their business, but flood insurance doesn’t cover this. Flood insurance is only meant for physical damage. It won’t replace lost revenue due to a shutdown or other reasons related to the flood. Because of this, the business owner will likely need other coverage.
Navigating through insurance claims after a flood can be challenging for business owners, particularly because they’re probably also dealing with trying to handle the business itself. Having someone on their side to assist with this process is beneficial for anyone going through this situation.
