Five FAQs About Flood Insurance

12/17/2022 (Permalink)

In some areas, having a flood policy is practically required. In other areas, business owners may not have even heard of flood insurance. If you're in this category, you probably have a lot of questions. Here is some information that can help answer your questions.

1. What Is It?

Flood insurance is a policy you can get to offer protection for your business against flood damage. It is either an add-on or a separate policy from your standard commercial insurance policy, which won't cover flood damage.

2. What Does It Cost?

On average, flood insurance for small businesses in Tacoma, WA, is roughly $1,000 per year. However, what you end up paying for your policy is based on your deductible, how much coverage you want, and your risk levels.

3. Is It Necessary?

You may never actually need your flood insurance. In these cases, you may feel like you are wasting your money on commercial insurance when you could be investing it in new equipment or other items. However, if you don't have flood insurance and you experience flood damage, your business could go underwater trying to pay to repair the damage.

4. How Do You Buy It?

To purchase a policy, you're going to need to talk to your commercial insurance agent. You can also search for alternative providers who offer flood insurance. Before reaching out to an agent, ensure your business meets the requirements for the recommended policy. Pick a company that offers a policy in your price range that covers all of your equipment.

5. Are Elevation Certificates Important?

In high-risk zones, elevation certificates are used to calculate the potential costs of hiring a storm remediation company. These are important because they tell your insurer your elevation, compared to typical floodwater heights.

Ultimately, whether you purchase flood insurance should be based on your comfort level with your current FEMA risk zone. However, you could end up in a situation where you need it to prevent your business from failing.