Flood Insurance in California – 3 Key Benefits for Commercial Properties
Flood insurance in California covers what’s uncovered by commercial insurance for buildings: equipment, inventory, furniture, etc, says Rick Callaway, an experience broker for more than 30 years.
As rains pummeled California at the beginning of 2023, people began to have damage to their homes from mudslides and water damage. There were also widespread power outages that made it even harder to recover.
Unfortunately, very few Californians have flood insurance. They assumed their regular homeowner’s insurance would cover the damage, but it doesn’t.
Are you making the same mistake with your business?
Getting commercial flood insurance for your California business is essential. Here’s why.
Protecting Your Business Property
Unfortunately, normal business property insurance doesn’t cover damage from floods and mudslides. You need a separate flood policy for that, and if you don’t have one, you could be paying all those costs out-of-pocket.
Remember that flood damage does happen outside of high-risk flood zones, so don’t assume you’re safe because you’re not in a high-risk area. Recent California floods hit many areas that never thought they’d have flood damage.
Generally, commercial flood policies cover damage to a building and its contents due to:
- Overflowing streams and rivers
- Heavy rain
- Snow melt
- Storm surge
- Broken levees and dams
If you have water damage due to broken or damaged pipes or sewer backups, those repairs are generally covered under your commercial property insurance.
Work with an experience broker that is able to ensure that your coverage is correct
Help Replacing Inventory
If your inventory is damaged due to flooding, you can face hundreds of thousands of dollars in losses. You’ll have to replace the inventory in order to keep your business going.
Flood policies have a specific amount of money you can use toward replacing building contents, including inventory, equipment, furniture, and more. This is separate from the amount you can use to repair the building itself, so you have coverage for both elements of your business.
The contents and inventory inside your building are often more vital to your business than the building itself. It’s vital to have coverage to help you replace them in case of a flood.
Coverage is not Inexpensive, but the benefit is huge
Many companies provide commercial flood insurance through the National Flood Insurance Program (NFIP). However, some offer more robust private flood insurance.
It’s important to get the coverage you need. Prices for such coverages are rising every year.
That’s a small price to pay for the peace of mind that comes from knowing you’re covered in case of heavy rains, overflowing rivers, and other causes of flood. Even if you’re not in a high-risk area, you can still have flooding, so don’t delay in getting coverage.
Get the Peace of Mind You Need With Commercial Flood Insurance
Cleaning up and making repairs after a flood can be very expensive, and your business may not be able to weather the storm. Instead of taking the chance, get the flood coverage you need to cover both your building and your inventory and furniture.
Contact us to get your quote on commercial flood insurance today. You’ll have peace of mind knowing that if something happens, you’re covered.