Does My New York Business Really Need Flood Insurance?
Many people overlook flood insurance when choosing coverage for their New York businesses. In fact, it’s a common misconception that flood damage is covered by commercial property insurance. As a result, many business owners are left overwhelmed by recovery costs following a storm or flooding event.
The goal of flood insurance is to protect your business financially in the event that it’s affected by water damage as the result of a flood. The typical flood insurance policy covers damage to ceilings, walls, floors, furniture, equipment, inventory and sometimes more. You can get flood insurance privately or through the National Flood Insurance Program (NFIP).
If your business is located in a known high-risk flood zone and you have a mortgage monitored by the federal government, you must purchase a flood insurance policy. If you’re in a low-risk area or don’t have a mortgage, the decision to purchase or not purchase commercial flood insurance is up to you, but it’s a good idea to consider flood insurance even if it’s not legally required. After all, a good policy helps ensure a smoother and less stressful recovery after a natural disaster.
As you consider whether your New York business really needs flood insurance, keep these two factors in mind.
1. Flood Damage Can Be Far-Reaching
New York’s waterways give the city a unique character. However, they can also put businesses at greater risk of flooding. Many New York businesses are susceptible to flooding by heavy rain, fast snow melt and hurricane storm surge. Even if your business is located outside a so-called high-risk flood zone, you may still experience flooding. Around 20% of NFIP claims come from policyholders outside high-risk areas.
In addition to reaching businesses beyond the waterfront, flooding can also result in costly damages that many small- and medium-sized businesses struggle to pay out of pocket. Between 2011 and 2015, the average commercial flood claim amounted to almost $90,000. It’s easy to see why many small businesses never reopen their doors after a disaster. Whether your business is located in a low-risk or high-risk part of New York, having flood insurance can give you security and peace of mind.
2. Flood Insurance Is Worth the Investment
When you get flood insurance through NFIP, you can receive up to $500,000 in coverage for your building and an equal amount to cover what’s inside. Though policies range in cost, it’s possible to create a custom plan to fit the needs of your business. When deciding how much coverage you need, remember to consider:
- Your building’s unique flood risk
- The value of the building’s interior
- The location of valuable equipment and items
- All costs associated with recuperation after a flood
An experienced insurance broker can help you find an appropriate flood insurance plan that fits within your budget.
Find the Flood Insurance Policy That’s Right for Your Business
Flood insurance can help your New York business recover after a flood, so you can keep doing what you do best! At Kokkoris Insurance Services, our independent agents want to help your business thrive by finding insurance that’s right for you, whether that’s an NFIP policy or something else. Reach out to us online or call 718-728-0606 to take the next step toward protecting your business.