Why You May Need Excess Flood Insurance

Why You May Need Excess Flood Insurance

If your business is located near a flood zone, you probably have a basic flood insurance policy. However, the basic policy could be insufficient to fully rebuild a business after a flood. Your specific circumstances will determine whether you need excess flood coverage.

Risk of Flooding and Storms

You should be wary of underestimating your flood risk. Even moderately severe weather can produce localized flooding that damages property. If your location is near rivers or the coast, pragmatism demands you admit that your business is vulnerable to flooding.

Omissions from Standard Flood Insurance

One of the best arguments for excess flood commercial insurance is that it can cover things the typical flood policy does not. First, the value of your business is likely to be well above the coverage limits of the normal flood insurance policy, especially if you have a lot of lost inventory. Additionally, excess flood policies can include coverage for things like lost business and perhaps provide supplemental payments to help cover your personal bills when you can’t work.

The Real Cost of Rebuilding

The costs of rebuilding after a flood are almost certainly going to be higher than you think. Any construction project can run over its budget, but the stronger building codes and possible labor shortages in the aftermath of a natural disaster can make those costs even harder to predict.

The potential for weather-related business losses will never be perfectly predictable. If the unthinkable happens, excess flood commercial insurance may prove to be a lifeline for your company.