As with homeowners insurance policies, many business owners don’t realize that their commercial property insurance doesn’t necessarily cover flooding.

Suffering a flood can wipe out a business, because it’s not just a matter of replacing damaged equipment and repairing buildings, but also the sheer time it takes, during which the facilities can’t be used.

In some cases, flood insurance policies don’t take effect until after a 30-day waiting period, so it’s not smart to wait until heavy rain is forecasted in your business’ location.

Additionally, it’s important to note that with commercial properties, sudden excessive rainfall isn’t necessarily the biggest flood risk. You must also factor in drains getting clogged, which can turn a normal rainfall or snow storm into an unexpected catastrophic event.

As a business owner, you’ll need to look at both commercial flood insurance offered through the federal National Flood Insurance Program (NFIP) and commercial flood insurance coverage from non-NFIP policies.

The two big advantages of non-NFIP policies are that they can pay out full replacement costs (whereas NFIP payments account for depreciation), and they can include coverage for loss of business during the rebuilding phase (loss of business is not covered by NFIP).

Another thing to consider is that even with a flood insurance policy, certain perils that you may need covered, may be excluded. For example, if your business is in a flood zone, your assets encounter different conditions and require supplemental coverage. Having the right coverage can complement your existing policy and can help limit the financial strains related to these conditions.

We offer Difference in Conditions (DIC) coverage as an extension to your existing policy, which adds those perils that are not typically included. Since each DIC policy is unique, we will work with you to create a customized insurance policy that works for the unique needs of your business.

Whether your business is located in an area of common flooding or not, commercial flood insurance is worth exploring. Contact our insurance experts, and we can help you get started.

Let’s discuss your business flood insurance.

One of our insurance advisors will reach out to you to review your information and present you with the appropriate flood insurance solution. There’s no obligation, just good-old-fashioned advice.
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Foundation Insurance Group offers comprehensive flood insurance throughout Arlington, VA, Alexandria, VA, Falls Church, VA, Washington, D.C., Fairfax, VA, Loudon County, VA, Ashburn, VA, Montgomery County, MD, Annapolis, MD, Louisville, KY and St. Matthews County, KY.