When the Unexpected Occurs, and Flooding Results
Rarely do hurricanes directly affect the north-eastern portion of the United States. However, during the week of August 22nd 2011 just about everyone who lives or works along the eastern seaboard was focused upon the potential threat that Hurricane Irene posed to both life and property. As the week progressed, it became apparent that the storm would make landfall somewhere in the New York metro area.
The typical commercial property insurance policy excludes coverage for damages related to a flood. Consequently, claims that result from an overflow of inland or tidal waters; unusual and rapid accumulation or runoff of surface waters from any source; or mudflow are excluded. Regardless of where a property is located, the purchase of a separate flood insurance policy is essential to adequately protect a property owner or business from the devastating effects that a flood can cause.
If the community in which you are located currently participates in the National Flood Insurance Program, businesses can purchase up to $500,000 in commercial structural coverage, and up to $500,000 in contents coverage, through the NFIP. Additional excess flood coverage may also be available from commercial insurance carriers.
In general, the following items are covered under the structural portion of the flood policy:
-Building & Foundation
-Electrical & Plumbing
-HVAC Systems
-Carpets
-Wallboard
-Cabinets
-Window Blinds
-Debris Removal
In general, the following items are covered under the property portion of the flood policy:
-Furniture
-Portable Appliances
-Window Treatments
-Personal Property
In general, the following items are not covered under either the structural or property portions of the flood policy:
-Damage caused by moisture, mildew or mold that could have been avoided by the actions of the property owner.
-Property that is located outside of an insured building.
-Any expenses related to business interruption, or loss of use.
A standard flood insurance policy covers only direct physical damage to your property, and any claim payment will be made up to the replacement cost, or will be based upon actual cash value, whichever is less. In no case will payments made be more than the policy limits. There is also a deductible that applies to both building and contents separately.
In order to assure that you have adequate coverage, it is advisable to consult with an insurance professional. Flood insurance can only be purchased through an insurance agent; you can not buy it directly from the federal government. There is typically a 30 day waiting period before a flood policy goes into effect, and premiums must be paid for the full year policy period.
As we witnessed during the aftermath of Hurricane Irene, during extreme conditions, many areas that are not normally prone to flooding can experience flood related damage. If not properly insured, losses of this type can have a devastating effect upon both property owners and their tenants.
More information regarding flood insurance can be found at:
Joe Mignon currently serves as the CEO of Couch Braunsdorf Insurance Group, a privately owned independent agency that has specialized in custom tailored insurance solutions for corporate, professional and personal insurance clients since 1903. CBIG also owns and operates a full service title insurance agency that services both commercial and residential customers. The agency is located at 701 Martinsville Road in Liberty Corner, New Jersey.
Joe can be contacted directly at:
1-908-660-0194
or
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