In 2018, at least a dozen big cities in the eastern US recorded the wettest year to date, including cities in our area like Roanoke, Virginia and Charleston, West Virginia. In addition, for the fourth consecutive year, “hurricane activity began prior to the official June 1 start of the season. [. . .] The 2018 hurricane season was the first since 2008 to have four named storms active at the same time.”
Insurance is all about protecting your business in areas of risk. When it comes to water and flood damage, the risk is rising rapidly! With the recent trends in weather and climate, it may be time to look again at YOUR flood risk and determine how to protect your business from the unexpected.
What is a “flood”?
- A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (one of which is your property) from:
- Overflow of inland or tidal waters
- Unusual and rapid accumulation or runoff of surface waters from any source
- Mudflow
My mortgage company doesn’t require coverage. Doesn’t that mean my building is safe?
- The economic impact of a flood is so destructive that the government requires flood insurance in the highest risk areas; it’s a common misconception that if you’re not in a high-risk flood area, you won’t be affected by a flood. Nothing could be further from the truth! According to the National Flood Insurance Program, one in five claims in the last ten years came from low to moderate-risk areas.
- Make sure you are assessing your individual risk, not simply relying on regulation. Remember: just because it’s not required doesn’t mean you don’t need it!
But I have property insurance already. Why do I need another policy?
- Your property insurance policy will exclude damage from a flood. It may cover some types of water damage, like backup of sewer and drains, but don’t mistake that for flood coverage.
I’m still not sure a flood could really hurt my business. How much trouble can a little water cause?
- Clean up costs can be more than just drying out your basement. Mold remediation and decontaminating bacteria may be needed as well.
- Damage to property can be expensive
- Flood-related erosion could make a building or area unsafe and inaccessible
- Do you have any clients that rely on your prompt service? Would you lose those clients if you were unable to respond?
- Your employees depend on your business to keep them financially stable and safe. What would happen if you were unable to operate the business for several weeks?
But doesn’t the government always provide assistance for big floods?
- With a flood insurance policy, claims are paid regardless of the status of the flood as a national disaster. You receive actual funds from a flood insurance claim settlement, not an interest-bearing loan from the government just to get you back on your feet. In contrast, waiting for disaster assistance can be frustrating and uncertain; and the assistance must always be paid back, sometimes with a 30-year loan.
OK, I’m convinced. What do I do?
- Talk to us about your risk. One of our values at LD&B is “service first.” That means we will give you our best advice to help YOU, not push you into a decision that benefits us. We can help you evaluate your risk and plan appropriately!
- Think about a safety plan today. Do you know the most likely source of flood or water damage for your building?
- If you haven’t already, make sure your maintenance is up to date on your roof, gutter and downspouts.