TEXAS/FLORIDA—During this active storm and Hurricane Season, businesses must take the necessary steps to protect their equipment, operations, and investment. Flooding is one natural disaster that can be devastating to your business. A commercial flood insurance provides up to $500,000 of coverage for your building and up to $500,000 for its contents. Should you need additional coverage you can purchase excess insurance coverage to rebuild properties valued above the National Flood Insurance Program limits.

Excess insurance will also provide protection against business interruption

Every business owner should know that your Standard Commercial Property insurance does not cover damage from flooding, including that generated by hurricanes or storm surge. Your Commercial Package Policy (CPP) nor Business Owners Policy (BOP) do not cover it either.

For businesses in low-risk areas, the NFIP offers a preferred risk policy with coverage for both the building and contents for one low premium, or a contents only policy that’s substantially less. For businesses in high-risk areas, the premiums may be higher with separate building and contents coverage.

If your business is located in a high risk-flood area and your commercial property has a mortgage obligation from a federally regulated insured lender, know that you will be required to acquire flood insurance. You will want to be sure to purchase it with enough time ahead and be aware of a possible 30 day waiting period from your insurer, before your policy goes into effect.

Flood insurance covers damage to your building and its contents

Losses resulting from water overflowing rivers or streams, broken dams or levees are also covered. The waters must cover at least two acres, or affect two properties in order to be considered a flood. Other causes not considered under the above mentioned flood definition may be covered by your standard commercial property insurance instead.

Damage from mold or mildew after a flooding event will be covered by your flood insurance policy. If any of these conditions existed prior to a flooding event those will not be covered. The policyholder will always be responsible for taking reasonable and appropriate mitigation actions to eliminate mold and mildew.

Separate deductibles may apply to the building and the contents, with different amounts possible for each. If you are seeking ways to lower your premium, you may opt for a higher deductible, but keep in mind that this will reduce the total claims payment if you have a loss. Claims are usually paid for the actual cash value of the building and/or contents, which is typically the replacement value, less depreciation.

At Garzor Insurance we care about your business. Our experienced professionals are dedicated to providing commercial insurance, including BOP coverage and business general liability coverage in Florida as well as Texas, and now many other states across the U.S. If you also have questions about truck or other commercial vehicles insurance, or any other business insurance aspects, please do not hesitate to visit us online at Garzor Insurance, or you may want to call us directly at (321) 206-8035. 

Luis Lapp

Licensed Insurance Agent