Why You Should Make Flood Coverage Part Of Your Commercial Insurance

Commercial Insurance Frisco TXJust in case you couldn’t tell, North Texas and all of North America is in the middle of hurricane season, which means it’s time to rethink your commercial insurance.  What do hurricane season and your North Texas business have to do with each other?  While hurricanes themselves aren’t a risk in our part of Texas, residual events like tornadoes and floods are, and that means that even if your business is in a low-to-moderate-risk area for flooding, you could suffer devastating losses if you have a flooding event and your only coverage is your commercial insurance.

Your Commercial Property Insurance Doesn’t Include Flood Coverage
Damage to your facilities from flood waters, including those generated by a hurricane storm surge, is typically not covered under a standard commercial policy. Neither a Commercial Package Policy (CPP) or a Business Owner’s Policy (BOP) will pay for flood damage; but a flood insurance policy from the U.S. government’s National Flood Insurance Program (NFIP), that you purchase through your insurance agent, will.

A Flood Insurance Policy Covers A Variety Of Flooding Scenarios
Flood insurance insures you against losses that result from water that overflows rivers or streams, heavy or prolonged rainstorms, melting snow, blocked storm drains, broken dams or levees and more.  To be considered a flood situation, water must cover at least two acres or affect two or more properties. Flood insurance covers your building and its contents but doesn’t cover anything on the outside of your business, like landscaping and septic systems.  Also, damage to your commercial vehicles isn’t covered.

A Flood Insurance Policy Typically Covers Mold
One of the byproducts of water damage is mold and mildew.  Though each claim for mold is evaluated on a case-by-case basis, your flood insurance policy will cover mold as long as it wasn’t a preexisting problem.  Additionally, you, as the policyholder, will be responsible for taking a reasonable amount of action to mitigate a mold and mildew problem.

You May Be Required To Purchase Flood Insurance
Flood insurance isn’t optional for you if your business is located in a high-risk flood area and your mortgage lender is federally-regulated or federally-insured.

According to the NFIP, at least 25 percent of businesses that close after destructive events, like hurricanes and floods, never reopen for lack of the funds necessary to do so.  Don’t let your business be one of them.  Call us at the Anthony Blackmon Agency in Frisco, TX at (469) 291-9006 to find out more about adding flood coverage to your commercial insurance.  You can request a quote online at www.anthonyblackmonagency.com.

Commercial Insurance Frisco TX
Anthony Blackmon Insurance Agency
9191 Kyser Way, Suite 200
Frisco, Texas 75034
(469) 362-8484

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