Proactive Measures for Businesses in the Face of Hurricane Season: Securing Commercial Flood Insurance

With the 2023 hurricane season drawing near, businesses operating in flood-prone areas must ensure adequate protection — and securing commercial flood insurance is a primary concern. It safeguards businesses from the devastating financial impacts of floods, which can cause significant property damage and loss of income. This article details the need for commercial flood insurance, what it covers, and why it’s essential to act now due to the waiting period before coverage begins.

The Importance of Commercial Flood Insurance

Floods are among the most common and costly natural disasters in the United States. According to one study, the threat of flooding poses a growing danger to the commercial real estate sector, leading to a significant rise in costs. The study reveals that around 730,000 retail, office, and multi-unit residential properties in the United States are at risk of annual flood damage. The projected cost of structural damage caused by flooding was expected to reach $13.5 billion in 2022 and escalate to over $16.9 billion by 2052. The research conducted by the nonprofit organization First Street Foundation and global commercial engineering firm Arup takes into account factors such as sea-level rise, with a particular emphasis on flash floods, also referred to as pluvial flooding.

Commercial flood insurance is essential for businesses in flood-prone areas, as it provides financial protection against the devastating effects of floods. Moreover, it is necessary to note that standard commercial property insurance policies typically do not cover flood damage, making it crucial for businesses to secure separate flood insurance coverage.

The Waiting Period Before Coverage Begins: Why You Need to Act Now

Understanding the waiting period before coverage takes effect is critical to protecting property with a commercial flood insurance policy. The typical waiting period is 30 days, meaning businesses must secure coverage well before the hurricane season to ensure they are adequately protected.

The 30-day waiting period is designed to prevent businesses from purchasing flood insurance at the last minute when a flood event is imminent. Insurance companies need time to assess the risk and determine the appropriate premium for each policyholder. Insurance providers can maintain a stable and sustainable flood insurance market by enforcing a waiting period.

Given the unpredictability of hurricanes and the potential for flooding, businesses need to act now and secure commercial flood insurance before the hurricane season begins. Waiting until a storm is on the horizon could leave your business without coverage and vulnerable to the financial devastation that floods can cause.

How to Obtain Commercial Flood Insurance

To secure commercial flood insurance during hurricane season, businesses should take the following steps:

• Assess your risk: Determine your business’s flood risk by consulting FEMA’s flood maps and understanding the different flood zones. It will help you gauge the level of coverage your business may require.
• Review your existing coverage: Examine your current commercial property insurance policy to confirm that it does not include flood coverage. If it does, ensure that the coverage limits and deductibles are appropriate for your business’s needs.
• Contact an insurance agent: Work with a knowledgeable insurance agent, such as the Dickstein Associates Agency, specializing in commercial flood insurance. We will help you navigate the National Flood Insurance Program (NFIP) and private flood insurance options to find the best coverage for your business.
• Purchase coverage: Once you have selected the appropriate coverage, purchase the flood insurance policy and ensure it is effective well before the hurricane season begins.

In conclusion, securing commercial flood insurance during hurricane season is crucial for businesses in flood-prone areas. Don’t wait until it’s too late; the time to act is now to safeguard your business with commercial flood insurance. 

At Dickstein Associates Agency, a Division of Risk Strategies, Co., our experienced team is ready to assist you in finding the best possible coverage tailored to your unique needs. We will assess your risk level, budget, and stated concerns to deliver the best possible commercial flood insurance coverage for your business. Contact us today to get started on protecting your business from the financial devastation that floods can cause during hurricane season.