Business Flood Insurance Risk Factors

The Rock River having flooded into a business ...

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Business Flood Insurance Risk Factors

If you’re a business owner (well, even if you’re not actually) you’ll know how important it is to keep your business running in order for it to survive. Your business building will need to be protected as well as the contents within it, and that doesn’t matter whether you’re in manufacturing, sales or storage.  Your business might be located in a high risk flood zone, it might be located in a moderate to low risk flood zone (the premiums will vary depending upon that and other factors), but you still need to make sure that you have adequate business flood insurance, floods can strike almost anywhere . . .

Business Flood Insurance for Moderate to Low Risk Areas

If your business premises are in a moderate to low risk area, then the chances are that you’ll be eligible for a Preferred Risk Policy which have the lowest premiums (by far) available. You’ll be able to get insurance cover for your building and the contents all at one inclusive price. If you prefer, contents only flood insurance is available (perhaps if you only rent out the building). How much will it cost? Well, let’s see:

  • Preferred Risk Policy for building and contents insurance start from around $570 per year.
  • Preferred Risk Policy for contents insurance only starts from around $165 per year.

You can actually bag yourself up to $500,000 building and $500,000 contents insurance with a commercial  flood insurance policy.

Just because your business premises are not located in a high risk flood zone it certainly doesn’t mean that you are safe. More than 20% of flood claims are actually filed from areas outside the high risk zones, 1 in 5, that’s quite high odds isn’t it, so even if you don’t need to take out business flood insurance from a legal point of view, you know deep down that it makes good economic business sense to do so.

Business Flood Insurance for High Risk Areas

If your business premises are located in a high risk flood zone and you have a mortgage from a federally insured or regulated lender then you’ve got to have business flood insurance . . . no if’s or buts, it’s a legal requirement, but apart from that it’s also a really good idea!

I don’t suppose the stores will be open for business again for some time, do you?

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