The NFIP defines a flood as: “A general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow.” While flooding more frequently occurs along rivers, lakes and streams, it also occurs in coastal areas. But as we’ve seen across the U.S., it also can occur as the result of a large amount of rain or snow, even to properties not in a flood zone.
The impact from a flood can be devastating. Even if your business isn’t in an area historically prone to flooding from waters rising nearby, that doesn’t mean you can’t be affected by a flood. We’ve all seen the historic rain and snowfalls that lead to flooding in the news. The fact is, floods can happen anywhere, and your business insurance might not provide enough coverage for your losses.
Flood insurance covers two broad areas of loss. The first is to the physical building or structure, which includes damage to the foundation, walls, HVAC, wiring and more. The second form of coverage insures the contents including furniture, equipment, inventory and other items within the structure.
The flood damage in the General Property Form is paid based on Actual Cash Value (ACV) for losses to the insured building and its insured personal property (contents) including stock and inventory. ACV is the cost to replace an insured item of property at the time of loss, less the value of its physical depreciation.
Talk to your agent at Professional Underwriters today to get your quote!