11 Things Business Owners Should Know About Flood Insurance - Before It Rains

11 Things Business Owners Should Know About Flood Insurance - Before It Rains

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When Noah built his ark he was planning ahead, before it rained. Now, Noah may have lived a long time ago, but it still pays to plan ahead. Give some thought to whether you need flood insurance before the next hurricane or major flooding event.

1. What Are The Limits Of Flood Insurance Coverage?
Flood coverage limits for a standard flood policy are as follows:

Coverage Type Coverage Limit
Business structure $500,000
Business contents $500,000

For non-business
One to four-family structure $250,000
One to four-family home contents $100,000
Other residential structures $250,000
Other residential contents $100,000

Renter contents $100,000

2. What is the Preferred Risk Policy (PRP) with Business Flood Insurance?
Preferred Risk Policies are available for residential or nonresidential buildings also located in these flood zones, and that meet eligibility requirements based on the building's entire flood loss history. The Preferred Risk Policy offers multiple coverage combinations for both buildings and contents (or contents-only, for renters) that are located in low-to-moderate risk areas (B, C, and X Zones).

3. What Flood Damage Is Covered In My Basement or Storage Area?
Flood insurance covers your business foundation elements and equipment that is necessary to support the foundation and structure (ie, furnace, water heaters, circuit breakers).

4. Should I Purchase Building and Content Flood Insurance?
The NFIP encourages flood zone individuals to purchase both building and contents coverage. Flood insurance does not cover basement improvements, such as finished walls, floors, ceilings or personal belongings that may be kept in a basement.

5. Does Flood Insurance Cover Flood Damage Caused By Hurricanes, Rivers, Or Tidal Waves Or High Tide Waters To My Commercial Business?
Yes, providing that, if confined to your property, the flood water covers at least two acres.

6. Is Flood Damage From Wind-Driven Rain Covered In A Normal Homeowners Insurance Policy Or Do I Need Flood Insurance?
No. When rain enters through a wind damaged window, door, through a hole in a wall or roof, the NFIP considers the resulting puddles and damage to be windstorm related, not flood-related. This why you need to buy flood insurance coverage.

Flood insurance covers overflow of inland or tidal waters and unusual and rapid accumulation or runoff of surface waters from any source.

7. How Can I Find Business Flood Insurance?
If you live in a community that participates in the National Flood Insurance Program (NFIP), you are eligible to purchase flood insurance. Over 20,000 communities participate, and it's likely that yours is one of them. To buy a flood insurance policy, call your insurance agent or company.

8. What Will My Business Flood Insurance Premium Cost?
It is essential that you visit with your insurance agent to determine exact costs.

9. How Is My Business Flood Insurance Rate Premium Calculated?
A number of factors are considered when determining your flood insurance premium. The factors include the following: the amount and type of coverage being purchased, location and flood zone, and the design and age of your structure. For homes in high-risk areas (e.g., Special Flood Hazard Areas or AE, VE Zones) built after the first flood insurance rate maps were drawn for that community, the elevation of the building in relation to the base flood elevation is also required.

10. Will There Be A Waiting Period For My Business Flood Insurance Policy To Take Effect?
Most likely. There is generally a 30-day waiting period from the time a flood insurance policy is purchased to when it actually goes into effect. Read about exceptions to this waiting period.

11. What Can I Do To Protect My Home, My Family, My Business From A Hurricane?
Besides insuring your property, there are things you can do to minimize potential loss to your home and ensure your family and business safety.

For your business:

* Develop a Business Plan: have emergency numbers for all key personnel. If you have multiple locations, use out of area numbers as well, as those telephone lines may not be affected.
* Create a Disaster Supply Kit: Have enough basic medical care supplies given the size of your business.
* Have a Place to Go: All employees will know where to meet in the event of a flood emergency.
* Secure Your Business: Make structural improvements, landscaping changes to prevent water from getting next to, and into, your property.
* Prepare for the Possibility of a Flood: Have a written policy on what to do in case of a flood and discuss it at meetings.
* Make sure any photos or videos of all of your important possessions are in a safe place. These documents will help you file an accurate and comprehensive flood insurance claim. If you video your entire building once a year a store it in a safe place you will save time and speed up any insurance reimbursements.
* Store important documents and irreplaceable personal objects (such as photographs) where they won't get damaged. If major flooding is expected in your area, consider putting them in a storage facility.

For your home:

* Develop a family plan
* Create a disaster supply kit
* Have a place to go
* Secure your home
* Make a pet plan
* Prepare for the possibility of a flood
* Make sure any photos or videos of all of your important possessions are in a safe place. These documents will help you file an accurate and comprehensive flood insurance claim.
* Store important documents and irreplaceable personal objects (such as photographs) where they won't get damaged. If major flooding is expected in your area, consider putting them in a storage facility.

Remember to talk to your insurance agent if you have questions or would like additional information about flood insurance.

About the Author:
Rod Townsend has an informative site on flood insurance, that can help you when you hit those little rainstorms in life. It pays to plan ahead, so, plan ahead. If you need flood insurance infomration, come over for a visit. Thanks.



Article Originally Published On: http://www.articlesnatch.com


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