Delaware Business Insurance Update from CNC Insurance Associates, " Water Damage vs Flood Damage" 10-9-16

Small business owners need to understand the difference between what insurance companies consider  water damage versus flood damage. This is important because water damage may be covered under standard property policies. Flood damage is usually not covered and has to be bought from the National Flood Insurance Program (NFIP).
So let's simplify what you should know. If water comes up from the ground, runs off from heavy rains,  or inundates areas around lakes, streams, rivers, or oceans, then it is considered flood and is not covered by standard property insurance. When pipes rupture accidentally, building damage allows rain in, or internal water containers burst or crack, this is considered water damage and is usually covered.
With this simple way of understanding the difference, it is clear that every business needs a flood insurance policy to protect their property.  Flooding from rain, and over flows of bodies of water continually surprise business owners when their regular insurance policies do not cover the damage.
One of the biggest challenges occur when storms hit and Business Owners have claims from covered water damage and also from uncovered flooding. This typically does not bode well for business owners if they do not have a flood insurance policy as most insurance companies will exclude water damage pointing to flooding as the main reason for the damage.

Call your insurance professional and get a flood policy from the NFIP to protect your business property. This way you know your water claims will be covered whether they are from water damage or flooding. Until next time be careful out there and know your risks.

G. Kevin Nemith,  Pres. CNC Insurance Assoc. And The Small Business Insurance Center
Serving DE, PA, NJ, MD, and VA.
www.cncinsurance.com
www.bizinsurancetv.org

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