April Showers Bring May Flowers & Floods
Most commercial property insurance does not cover flood damage. This is a separate coverage for your business. Your business may need flood insurance even if you are not in a floodplain. We can help you purchase a separate policy from the National Flood Insurance Program.
Review Coverage Limits Annually at a Minimum
Business property insurance coverage limits should be in an amount sufficient enough to rebuild the structure and replace fixtures at current replacement prices. For example, a warehouse owner could call a local contractor and ask, “If I had to hire you tomorrow to build me a 30,000 square foot warehouse, what would you charge me?” This estimate is a more accurate projection of needed coverage amounts. A review of all coverage should be conducted at least annually.
Ordinance or Law Compliance Coverage
Traditional property policies do not cover costs associated with upgrading a structure to conform to building codes. Consider purchasing ordinance or law coverage. Premiums are typically a very good value for the potential coverage.
Why is this policy needed?
Building code laws often grandfather in existing structures. Such structures do not have to comply with modern codes as long as the structure is not renovated or rebuilt. After a disaster, if your building needs substantial work, then such construction must comply with modern codes.