How To Tell Whether You Need Flood Insurance
How often are commercial properties in West Valley City, UT, affected by flooding? Even if your properties aren't at risk of weather-related floods, could other types of flooding lead to dilemmas? Do you know whether you need a commercial flood insurance policy?
Check out a few pertinent facts:
- Snow that melts rapidly is one of the top causes of flooding.
- Just a moderate amount of rainfall could lead to clogged drains.
- Most commercial property insurance policies don't cover flood damages.
- Many floods happen outside the high-risk zones.
There are many causes of flood damage, including new development in the area and wildfires.
If you own property in an area that receives snow or rainfall, is attached to a municipal plumbing system, or may be affected by wildfires or new buildings, you should have commercial insurance specifically for flooding.
Do You Need Insurance?
If you are located in a high-risk flood area and if your mortgage came from an insured lender or a federally regulated lender, then you are required to purchase the coverage. If neither of these applies, determine whether you operate in a flood zone. Don't forget to consider the costs to your business if you ever needed the insurance but didn't have it. Contact a flood damage repair and reconstruction company to determine the cost versus risk ratio.
What Does It Cover?
Your first protective step should be to determine whether you have flood coverage. If you don't research what a flood insurance policy covers. You'll generally find that this coverage provides protection from losses when rivers overflow, snow melts, dams break, and rainfall overflows gutters.
Not all water damage is covered by this insurance. For example, if you leave your sprinkler system running all night, the damage may not be covered. If melting snow causes damages to septic systems or your landscaping, you may not get help with those financial costs.
Are You Covered?
Flood insurance is a type of coverage that could help your business survive during a disaster. Carefully consider your level of risk, what is covered, and what isn't as you determine whether to purchase a policy or not.