Flood Insurance For Your Home-Based Business
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Everyone loves the story of the self-made person who started a small business in their mother’s basement and then became a global success. It makes for a great Hollywood blockbuster, but one scene you never see in that movie is the one where the parents go to their insurance agent and make sure their basement has flood insurance.
Flood damage isn’t covered by home insurance
Basic rules of gravity apply when it comes to flooding, so it goes without saying that in the event of flooding, your basement is going to get the brunt of the problem. What most homeowners don’t realize is that flood damage isn’t covered in your standard home insurance policy or home business insurance policy.
What is covered by flood insurance
Flood damage can be extremely costly. Flood insurance will insure the building structure itself, protecting from damage to the foundation, electrical systems, built-in appliances, refrigerators (and the food in them), stoves, carpeting, windows, and even the garage. It will also cover the plumbing if the flood damage could have been prevented or if the installation wasn’t done properly.
Flood insurance also covers your personal property, clothing, furniture, curtains, appliances like washers, dryers, and microwaves, and area rugs.
If you or your child is running a business from your basement or garage or their bedroom, make sure that you tell your agent so that they can determine if the business will need additional coverage, or if you already have adequate insurance.
What flood insurance won’t cover
Flood insurance will pay for the physical damage caused by the flood, but the expenses of having your home business interrupted, even having to relocate while the flooding is being cleaned up, isn’t going to be covered by your flood insurance.
Work with an independent agent for all your insurance needs
Talk to an independent agent about flood insurance, and they’ll make sure that you are completely covered with the right insurance for your situation, including your home-based business.