Water may do a lot of destruction to your business, whether after a water pipe burst or during flooding. Insurance will help you recover your losses as well as get your company back in operation.
In the U.S., flood damage isn’t covered by private insurance. It’s covered by flood policies that are issued by the National Flood Insurance Program. It’s a government-backed program which provides low-cost policies to residential and commercial property owners. Usually, the policies must be in place one month before a flood happens for the damage to be covered. The only exception is an insurance policy that goes into effect after a mortgage closes.
The majority of private commercial insurance policies cover damage that is caused by non-flood circumstances. The precise coverage information usually is outlined within the policy itself.
Commercial flood policies that are offered by the NFIP provide coverage for physical damage, which includes:
- Food freezers
- Equipment and portable appliances inside the building
- Debris removal
- Window coverings such as curtains and blinds
- Permanent finishes such as bookcases, cabinets, paneling, and wallboard
- Hardwood flooring and permanent carpeting
- Appliances such as dishwashers, stoves, and refrigerators
- HVAC systems
- The plumbing and electrical systems for the building
- The building, as well as its foundation
Coverage for parts of the building which are underground is limited. Losses and damage from items kept inside the basement, walk-out lower floor, or inside crawl spaces might not be covered at all.
There are a few things that the National Flood Insurance Program policies don’t cover. The policies don’t include coverage for these:
- Financial losses because of business interruption or because of a loss of use of the insured business
- Damage to items outside the company, like decks, landscaping, swimming pools, walks, and hot tubs
- Valuable things like stock certificates, precious metals, and currency
Non-Flood Water Damage
Take a look at your commercial property insurance policy. You ought to have a non-flood water damage clause within the policy outlining what’s covered, what isn’t covered, and coverage maximums for any damage.
For more information on our water damage equipment contact SCI Supply today!