How Flood Insurance Helps Keep Your Business Afloat
How Flood Insurance Can Help Your Company Survive
Owning a business in Norman, Ok, can feel like exploring uncharted waters at times. One thing you don’t want to complicate the experience is damage from actual water, which can add up fast. When the dust settles (and dries), you could be looking at a bill for over $50,000 from just one inch of water. Here are three reasons why investing in a flood insurance policy for your business is important.
1. It's Usually the Only Insurance That Covers Flood Damage
Most commercial property insurance policies do not cover damage from flooding, a fact that, unfortunately, many business owners learn too late. Insurance can be purchased anytime from the National Flood Insurance Program. It offers coverage for up to half a million dollars for both building and personal property.
2. There’s No Such Thing as "No Risk"
You may be wondering why you need a flood policy if your business is not in a high-risk area. Flooding can be caused by blocked sewers and melting snow; even wildfires can increase flood chances in your neighborhood. According to statistics from FEMA, insurance claims from low-risk areas make up over 20% of all flood claims.
3. Other Assistance Options May Be Limited
While there are federal aid programs available to business owners affected by flooding, the president must declare a state of emergency to activate those benefits. What's more, these loans from the U.S. Small Business Administration must be paid back with interest. Because of this, having commercial insurance that also includes flood protection is like a lifeboat that can keep you from drowning in water damage or debt. Your insurance company will work in tandem with your local water damage restoration specialists to help get your business back on track in no time.
No matter where your business is based, flooding is always a risk. Having a flood insurance policy and knowing it inside and out can be the difference between treading water and smooth sailing.