How Do I Know If My Business Needs Flood Insurance?
One of your many responsibilities as a business owner is to make sure you're protected in the event of a natural disaster. If your property is in a known flood zone, the government mandates that you carry flood insurance. However, even if you're not in a flood zone, flooding can still happen. Then it's up to you to decide if the risk is worth having a separate rider with your regular commercial insurance policy.
Flood Zone Categories
A visit to FEMA.gov will help you determine which flood zone your property falls into. Here's a brief explanation of the zones:
Zone A: Zone A denotes that your business sits on a noncoastal flood plain.
Zone B: Zone B properties fall into the moderate risk category.
Zone C: If your property falls into Zone C, your risk of flooding is minimal.
Zone D: This zone indicates the possibility of flooding, though the degree of possible flooding has not been determined.
Zone V: If your property falls into Zone V, you are in a coastal area and flood insurance will be federally mandated since the risk of flooding is high.
Zone X: In new construction areas or rate maps, Zone X is often used in place of Zone B or Zone C.
Not all flooding is a direct result of heavy rain. If your building is in a colder climate, snowmelt can cause flooding if the weather warms quickly, either by overflowing rivers and streams as runoff, or oversaturating the frozen ground near your property. Construction or accidents can cause water main breaks, in-ground sprinkler systems can malfunction and cause local flooding around the building. What differentiates flooding from other water damage is its origin: Floodwaters are always at ground level.
After arming yourself with the proper knowledge, talk with your insurance agent about whether it's recommended to carry a separate flood insurance rider on your property in Hollywood, FL. Not only does it cover repair and replacement of damaged materials, but it will also pay for the cleanup and restoration process that is necessary to get you up and running again.