Why Business Renters Purchase Their Own Flood Insurance

11/9/2021 (Permalink)

Flood damage in La Marque, TX.

Running a business is challenging enough without having to worry about natural disasters. Still, business owners in La Marque, TX, must plan for flooding. After all, few things can bring a business to a standstill faster than a flood. Still, many business owners think they do not need independent flood insurance if they house their business in a rented building. That logic is misplaced. For a variety of reasons, purchasing renter’s insurance is usually a good idea.

Understanding Flooding

No business owner wants to watch floodwaters consume the workplace. Still, flooding is more common than you think. Floods occur in a variety of situations, including the following:

• Heavy rainfall
  
• Damaged dams
  
• Hurricanes
  
• Overflowing draining basins
  
• Melting snow and ice
  
  

Assuming Risk

Many business owners do not own the buildings that house their businesses. Even if the landlord has his or her own flood insurance, savvy business owners often choose to buy renter’s insurance. The rationale is simple. When a flood occurs, the landlord’s insurance policy generally covers structural damage to the building. This includes both interior and exterior damage. It does not, however, typically cover damage to the contents of the building. Without rental insurance, business owners are responsible for replacing equipment, inventory, computer systems and other business property.

Getting a Quote

Applying for both a renter’s and owner’s insurance policy is a similar process. Once you find a reputable insurer, expect to provide a list of business assets. After your agent determines your business’s flood risk, he or she can advise you on how much insurance your company should carry.

While renter’s insurance cannot eliminate the possibility of a flood occurring at your business, it can give you peace of mind. It can also help you cover the cost of a restoration service if your business ends up underwater. Either way, investing in independent flood insurance coverage is an effective strategy for protecting your business investment.