Does My Commercial Insurance Policy Cover Floods and Hurricanes?

10/1/2022 (Permalink)

Damage from flooding is different from hurricane damage. In many cases, the damage caused by hurricanes results from storm surges and rising water.

Is Flooding And Hurricanes Covered By My Commercial Insurance Policy?

Business owners in Hillsboro Beach, FL, might think their commercial insurance covers damage from hurricanes and floods. In many cases, though, you need to purchase separate coverage. Here are a few types of damage for which you may need separate storm insurance.

Hurricane Damage

This type of insurance coverage is currently a mandatory deductible in 19 states and the District of Columbia. It is a percentage deductible based on the value of your property. The cost of this coverage varies depending on your provider and where your property is located in relation to the coastline.
Hurricane insurance typically covers your building or structure and its contents for cleanup and storm damage restoration, including:

• Inventory
  
• Computers
  
• Electronic equipment
  
• Furniture
  
• Fixtures
  
• Cargo

Check your policy to see if passenger vehicles and machinery are included. Often, you need a separate policy to cover these items.

Wind and Hail Damage

Insurance coverage for hail and wind damage is included in standard property insurance for most of the country. In coastal areas, business owners may need to purchase separate storm insurance for these types of perils. Wind and hail damage may be covered under a hurricane policy.

Flood Damage

Damage from flooding is different from hurricane damage. In many cases, the damage caused by hurricanes results from storm surge and rising water. When damage results from water on the ground, it is considered flood damage.

You can purchase flood insurance through the National Flood Insurance Program, or NFIP. The program is managed by FEMA and offers insurance in participating communities through a network of companies.

If your business is in a high-risk flood area and has a mortgage through a government-backed lender, you must have flood insurance coverage.

It's best to review your policy from time to time to ensure you have the right storm insurance for the types of perils that can happen to your Hillsboro Beach, FL, business.