Flood Insurance – Business
NEWSFLASH – Colorado Does Experience Flood Events….
and It’s Not Covered by Business Owner Insurance
Flood Insurance Available for Front Range Communities of Denver, Golden, Littleton, Morrison, Arvada, Westminster, Boulder
Many business owners think Colorado is not a flood-prone state. This is not true. In 2013 flooding inundated the state. And there have been many past flood events in Colorado causing millions in dollars of damage homeowners and businesses along the front range. Here is proof:
Most people make the assumption that flood occurrences and the resulting damage to your home and belongings is covered by:
1. A standard business insurance policy or
2. A Government Agency
Flood Is Specifically Excluded from a Business Owner Insurance Policy
The Peril of Flood IS NOT Covered by a Business Owner Insurance policy, in fact most policies specifically EXCLUDE Flood Events
Government Assistance After a Flood Event
There are several types of assistance to a Business Owner after a flood provided by State and Federal Government agencies
Grants are monies provided to victims of a flood that don’t have to be repaid. Immediately after a flood, victims might likely receive small grants to provide pay for cleanup assistance. But in order to get the required repairs to the business location paid for with a ‘grant’ you might have to prove financial hardship.
As everyone knows, taking out a loan requires you to become indebted and the money has to be repaid.
In order to be fully covered and be able to repair your business replace your inventory and restore your operations after a flood, you have to purchase a separate policy specifically designed to cover the peril of Flood.
Below are some important facts to know about Purchasing a Flood Insurance
- You can purchase a flood policy through FEMA (Federal Emergency Management Agency) or a Private Insurance carrier, usually through insurance brokers or agencies. This program is called the National Flood Insurance Program (NFIP).
- The NFIP provides ‘replacement’ coverage for the building (meaning to rebuild your home as it was before the flood).
- The NFIP provides ‘ actual cash value’ coverage for your personal belongings, meaning ‘depreciated’ evaluation.
- The maximum limit you can purchase to restart your operations through FEMA is $250,000. Private carriers will insure for more.
- You can purchase an ‘excess’ flood’ policy if you desire more coverage than $250,000 to restart your operations.
- You have to purchase a Flood Policy BEFORE the event occurs. Most policies require a 30-day waiting period after purchase before coverage will apply
Denver West Insurance Brokers is a local insurance broker in Golden, CO. All our agents are licensed and can provide quotes for flood insurance through National Flood Insurance Program and private carriers. Make sure your business is insured for all types of perils, including a Flood event. Give us a call today! 303-960-5290