Keeping your business afloat through flood season
Keeping your business afloat through flood season
Five things every business owner should know about flood insurance
MECHANICSBURG, Pa. – Business owners are encouraged to get their ducks in a row before the water rises. A general property policy through the National Flood Insurance Program can prevent a business from going under when spring flooding hits.
“Heavy spring rains combined with frozen ground and melting snow can wreak havoc in areas beyond the typical floodplains,” said G. Kevin Nemith, chairman of the Insurance Agents & Brokers Service Group. “Flood insurance protects a business from the crippling costs of water damage.”
Flooding is the leading cause of property loss from natural disasters, according to Federal Emergency Management Agency which administers the NFIP.
Just in time for April showers, IA&B offers these five things every business owner should know about flood insurance:
- Standard business policies do not include flood coverage. Flood insurance is single-peril insurance (much like earthquake insurance) and requires a separate policy.
- Premiums are as low as $500 per year. The alternative – federal disaster assistance – applies to less than 50 percent of flooding events and is often a loan that must be paid off with interest.
- Coverage is available up to $500,000 for buildings and $500,000 for contents. A general property policy insures commercial buildings as well as residential buildings with more than four families.
- Policies typically require a 30-day waiting period before going into effect. There is no waiting period if you have an existing flood insurance policy and an additional amount is required for loan-related purposes.
- High flood risk does not preclude coverage. Except in Coastal Barrier Resources System areas, as long as your community participates in the NFIP, you can buy flood insurance.
“Over four million policyholders are already insured through the NFIP,” said Nemith. “It’s a sound investment in a company’s future.”
To learn more about the NFIP, contact your local independent insurance agent.
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About Insurance Agents & Brokers
The Insurance Agents & Brokers Service Group oversees the partnership of agents’ associations in Delaware, Maryland and Pennsylvania that work together to deliver pre-eminent programs, products and services for their nearly 1,600 members. Led by dedicated agent volunteers and staffed by 40 professionals, IA&B is recognized and respected nationally for its industry-leading efforts in agent professional development, advocacy, industry information and knowledge base, communications and more.
IA&B is affiliated with the National Association of Professional Insurance Agents in all three states and with the Independent Insurance Agents & Brokers of America in Delaware and Pennsylvania.
To learn more, visit www.iabgroup.com.
