Miami Flood Insurance
Flood insurance is a specific type of insurance coverage that protects your home or business from property loss due to flooding. Standard business insurance will not cover you against flood losses! Certain areas of the country — and specific areas of cities — are more likely than others to flood, although flood damage can happen anywhere, to anyone. Around 25% of all flood insurance claims come from areas that aren’t even considered high risk.
The Risks of Going without Miami Flood Insurance
Unfortunately, too many businesses in Miami operate without flood insurance. If your business has been damaged by flood waters, your business could remain underwater financially long after the water recedes. It’s estimated that about 40% of all small businesses fail to reopen after a flood, typically because they only had basic property insurance without flood coverage.
The average commercial flood claim between 2007 and 2011 was more than $75,000. If your business doesn’t have the liquid funds to handle a hit this large, it’s time to protect yourself from this devastating loss by getting a quote through Anderson & Jacoby today.
The Basics of Flood Insurance
Flood insurance covers both the property and belongings inside but it’s important to learn exactly what will be covered. For instance, damage from a sewer backup will only be covered if the backup is directly caused by flooding, not some other issue. A separate deductible will also apply to the building itself and the contents and you can select a deductible you’re comfortable with. As with other forms of insurance, a higher deductible will reduce your premium but also reduce your claim payment.
There is also usually a 30-day waiting period on the flood insurance policy from the date of purchase before it goes into effect. There are exceptions to this, however. If your lender requires flood insurance, map revision has increased the amount of insurance you require or you’re increasing the amount of insurance along with a policy renewal, the policy will take effect immediately.
Is Your Business in a High Risk Area?
Your business may be in either a high-, moderate- or low-risk area with an insurance premium based on this risk. Most businesses in a moderate to low risk flood area qualify for a preferred rate, with the lowest premiums available through the federal NFIP program with coverage for the building and contents together. You may also choose Contents Only coverage. If your business doesn’t qualify for this policy, a standard rated policy will still be available.
Your premium will be based on many factors, including:
- Flood risk
- Building occupancy
- Year building was constructed
- Location of contents
- Number of floors
- Deductible you select and the amount of coverage you decide upon
What is Covered?
Miami flood insurance covers physical damage to the property and contents, including the insured building and foundation, electrical and plumbing, water heaters, furnaces, central AC, appliances, carpeting, permanently installed cabinets or bookcases, window blinds, detached garages and debris removal. Contents may include everything from personal belongings and curtains to office equipment, furniture and more.
There are certain things that will not be covered by any flood insurance policy, including currency or valuable papers, damage as a result of mold or moisture that could have been avoided, vehicles and financial losses from a business interruption or loss of use.
Whether or not your business is in a high-risk area for flooding, flood insurance is essential to protect the financial security of your business. Learn more about flood insurance in Miami by contacting Anderson & Jacoby Insurance Consultants.