Should You or Should You Not Invest in a Flood Policy? That Is the Question

11/6/2021 (Permalink)

Flooded office building in Crestwood, MO.

Your business is your livelihood, which is why no measure should be too small or too great to protect it. While a flood policy is only required if you operate in a high-risk flood area, such commercial insurance might be worth your while even if neither condition exists. Even with minimal coverage, you will be covered for an amount equal to your Crestwood, MO, property's restoration costs or to the maximum limit of coverage offered by your policy — two options that are better than no coverage. That said, if you live in an area prone to flooding, you may want to invest in more than the minimum amount of coverage, just to be safe.

When a Commercial Flood Insurance Policy Is Necessary

Depending on where you live, the question of whether or not you should invest in commercial insurance for flooding may be a moot point. Federal and state laws require business owners to invest in a flood policy if the following factors exist:

• The mortgage is backed by Fannie Mae or Freddie Mac and the building is located in an area with special flood hazards
  
• You operate in an area prone to extreme flooding
  
• Your lender, insurer or other regulatory agency requires you to have a flood insurance policy
  
  

If one or more of the aforementioned factors exist, you are required to invest in flood coverage.

Where To Find Flood Coverage

There are several resources to which you can turn to find flood coverage for your Crestwood, MO, commercial building. FloodSmart.gov and the National Flood Insurance Program provide lists of insurers that provide such coverage. FEMA also offers plenty of resources as well as additional assistance if one's policy is not enough to cover the cost of damage.

While a quick Google search can yield the results for which you're looking, you can also contact your local flood remediation team for advice. It should be able to point you in the right direction and help you find the commercial insurance you need to protect your building and your business.