For businesses along the Gulf Coast, flooding is always a possible threat, particularly during hurricane season when there is a greater risk for devastating storms and torrential rainfall. However, many businesses skip Flood Insurance and other critical policies simply because they've avoided flooding before.
However, the increase of hurricanes and weather disasters in recent years should be a warning to all businesses that there is value in having the right kind of insurance policies for two reasons: flooding is becoming more common especially in the Gulf Coast region, and most businesses could not recover from a flood on their own. The focus of today's Aegis blog post is whether or not your business could survive the impact of a flood, and how Commercial Insurance policies help increase those odds.
Building Repairs
When evaluating flood risks and insurance needs, businesses should consider the value of everything that could be damaged or destroyed due to flood damage, and whether or not they could realistically pay for all repairs and replacement costs out of pocket. The cost of physical damage to the commercial property would likely include new walls and flooring, electrical and plumbing systems, and HVAC equipment. In addition, repairs may be necessary for telecommunication networks, property lighting and signage, and also landscaping or major trees on the property.
Property Replacement Costs
Along with building repairs, there would also be a substantial cost to business owners for the property inside that could be lost or destroyed by flood damage. This would include furnishings, tools and equipment, laptops and computers, system networks and data storage devices, as well as all merchandise or inventory stored inside. Business owners should also consider the cost of repairing or replacing commercial service vehicles or fleet vans that could be damaged by flood waters.
How Flood Insurance Helps
The cost of repairing a building itself after flood damage can be astronomical on its own, but when you factor in the repair and replacement costs of all property inside the building, the total is likely too much for any company to absorb on their own without help. Flood Insurance helps protect businesses by offsetting the financial hardships created by flood damage, and can cover the cost of repairs and asset replacement. Otherwise, businesses would have to face absorbing those costs all out of pocket, or securing a business loan that could take years to repay or could come with unfavorable terms.
Whether your businesses has flooded multiple times or has never experienced a flood before, it is beneficial to have the protection and peace of mind that comes with Flood Insurance. This policy, when included in your Commercial Insurance portfolio, can be the difference between a temporary closure and a permanent one due to flood damage. Aegis Insurance & Financial Services works with companies of all sizes and industries to create insurance packages tailored to their unique business needs and to ensure they are well protected when disaster strikes. Contact the Aegis team about Commercial Flood Insurance at 713-850-7622 or fill out our online form for more information.