Why Flood Insurance Matters

Tuesday, March 15, 2016Sean Ritchie

In the last few months we have all seen or lived in areas that have experienced significant flooding. You may have flood insurance for your home but how about your business? Floods are the most common natural disaster yet most insurance policies don’t cover this type of damage. Most people believe that if a flood should occur, disaster assistance will be accessible. Not all floods are considered Federal Disasters and therefore, aide may not be readily available.

There are many types of flood insurance and the cost associated with each is typically dictated by the flood risk area. For example, a policy in Louisiana will cost more than a policy in California - more than 888,000 people in Louisiana live in 1,180 square miles of land less than a meter above sea level. Policies are administered through the National Flood Insurance Program and are available not only in high risk areas but in moderate to low-risk ones as well.

Homeowner flood insurance can be purchased to cover up to $250,000.00 for structure and $100,000.00 for contents. Considering a few inches of water can cost thousands of dollars in repairs, a flood insurance policy can offer piece-of-mind – knowing that your home is covered.

Commercial flood insurance has different options for building and content coverage (Preferred Risk), content only coverage, or standard rate policies for those who don’t qualify for the Preferred Risk type. Statistics show that 25% of businesses, who are not covered, are unable to reopen because of the financial toll that repairs would cost.

Premiums for each type of flood insurance are typically based on the following:

1)  Geographic flood zone

2)  Chosen deductible

3)  Coverage amount

4)  Type of coverage

Don’t wait until a flood is on its way as you may be too late. It can take up to 30 days for policies to take effect. Why risk the consequences and not have your property and possessions covered?

About the Author

Sean Ritchie
Vice President, Construction

In a crisis, you need rapid response from a company with the skills and experience required to handle any type of disaster.

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