3 Facts That Will Make You Want Flood Insurance

7/15/2022 (Permalink)

Commercial water mitigation in Black Diamond, WA.

Protect Your Business With Flood Policy

Business owners from high-risk flood zones have probably seen commercial insurance policies that offer protection against natural disasters. Meanwhile, many business owners in Black Diamond, WA, do not understand this option's importance. These people are too worried about the cost of the policy, which can range from a reasonable FEMA policy to a high-end private one. They often overlook the fact that a flood can cause excessive damage that needs to be restored by a storm remediation company. If you are in this boat, some facts may convince you that flood insurance is a good idea.

1. Property Insurance Doesn’t Cover Flooding

Even commercial insurance only covers damage from rainwater that has not touched the ground. For instance, if a tree goes through your roof while a storm rages and rainwater ruins your floor, it is covered. Once water hits the ground, it becomes a flood and is no longer covered. In other words, a rising creek caused by rain is not covered. Only flood insurance will cover this type of situation.

2. Every Business Is at Risk of Flooding

Rather than if, you should ask how much flood risk you have. The national flood maps can give you an idea of your exact risk. Certain zones are high-risk. Others are medium- or low-risk. Remember that low does not mean no. You are still at risk for flooding in low-risk zones.

3. Government Aid Is Not Insurance

Unlike commercial insurance, government aid is primarily loans that you'll need to repay. Plus, you cannot receive aid unless your area is federally declared a disaster zone, which happens for only a few major flooding events.

Unfortunately, standard insurance doesn't cover flooding. To protect your business, you'll need a flood policy. To make things worse, you can't rely on government aid for your company. These are simply loans that you will need to pay back. Plus, you can't always receive these loans. Since every business is in a flood zone, proper insurance is a must. This ensures that any damage you incur to do a flood is covered.