Does My Business Need Flood Insurance?

6/14/2021 (Permalink)

Flood damage in Dacula, GA.

Flood Insurance for Business

Being a business owner means always thinking about your bottom line and always trying to cut costs where you can. You likely know that it’s a good idea to review your commercial insurance coverage periodically to be sure that, on one hand, you have enough coverage, and, on the other hand, you aren’t overpaying for coverage you don’t need. Flood insurance is a topic that often comes up during this type of coverage review: Do you need a flood policy? Asking yourself these three questions could help you determine whether you should have flood insurance in place for your Dacula, GA, business.

1. Is My Business Located Within a Flood Zone?
The U.S. Federal Emergency Management Agency has developed a series of maps that designate certain areas as flood zones. You can check your location’s flood zone designation here. If your building is located within a FEMA flood zone, your mortgage company requires you to maintain a flood policy in addition to other commercial insurance. If you don’t have a mortgage on the property, you may still want to carry flood insurance.

2. How Would a Flood Affect the Contents of My Business?

Take a moment to think about what sorts of items, inventory, and equipment are physically located in your business building and consider what would happen if the building were to be filled with an inch, or a foot, of floodwater. Are most of the business contents replaceable, or would a flood cause irreparable damage to original documents or one-of-a-kind equipment?

3. Do I Have Funds Available to Cover Flood Expenses Without Insurance?

Flood cleanup can be a long and expensive process. Water can damage flooring, drywall, furniture, electronics, and even your building’s framework. Without flood insurance, you would need to pay for cosmetic and structural repairs and other expenses such as water damage mitigation and mold control.
If your business is in a flood zone or stands to suffer significant damage in a flood, adding a flood policy to your commercial insurance portfolio is a smart decision that could keep you from paying thousands out of pocket.