What a time for weather! As we all know, Superstorm Sandy roared up the east coast in October, leaving tremendous destruction in her wake. Storms and inclement weather conditions are very unpredictable and many times, come with little warning.
Flooding and wind damage can occur anytime and in places one might not expect. Anywhere it rains, it can flood. You don’t have to live in a designated flood zone to be faced with a property loss. Floods can be caused by a number of events such as storms, melting snow and excessive rain. Many areas across the U.S. are faced with increased risk of flood due to the wildfires, which destroy natural protection against flooding. These types of fires leave behind charred ground where vegetation was once present, and served the purpose of absorbing the rainwater and melting snow, which now, just runs off.
When involved in any type of loss, most people immediately look to their insurance company to compensate them for loss of business income and replacement of damaged property. Are you aware that some causes of loss are excluded from coverage under your policy? Also, in order to collect loss of income (Business Interruption Coverage), the cause of loss must be covered.
Floods happen in every state, so anyone can be at risk!
Typically, damage caused by flood is one of the coverage exclusions in your business property insurance policy. To protect yourself from a potential loss caused by flood, you must purchase a separate policy specifically designed for this type of occurrence. Flood insurance doesn’t typically have Business Interruption Coverage. Flood insurance is designed to provide you with protection if faced with flood damage. Every business should consider purchasing this coverage, even if you are not located in a flood plain. The fact is that it takes a very small amount of water to cause thousands of dollars in damage to your property.
As with other types of coverage, flood insurance must be purchased from your agent, who can discuss with you the options available. Keep in mind, there is typically a 30-day waiting period from the date of purchase before a new flood policy goes into effect – don’t wait for the weatherman’s forecast to make your decision on purchasing a flood policy. If there is a pending storm on the horizon, the actual coverage will not take effect until the waiting period has passed. Floods happen in every state, so anyone and any business can be at risk.
To all of our friends, associates and clients who found themselves in the path of Superstorm Sandy, you are in our thoughts as you recover. We hope that you, your loved ones and your property were unharmed.
