With hurricane season only a few weeks away, property and business owners need to be sure they’re prepared to protect their properties from water damage. This is essential as a study by the Federal Emergency Management Association (FEMA) reveals that 40% of businesses fold up following a disaster. The United States Small Business Association report shows that 90% of those who survived the disaster usually do not make it past the two-year mark.
Preemptive measures like insuring your business against the coming seasonal flooding are a must and the first step you should take. However, there are several factors you must consider before insuring your business.
Determinants of Flood Insurance Costs
The extent of damage to a business depends on the following:
1. Building Structure
The older and more fragile a building, the costlier the repairs. Complex architectural designs like buildings with many floors will have just as complex structure failures.
2. Home and Business Location
If your business is along the coastal regions, it means that your property will suffer more damage than properties situated farther from the seashore. Even more troubling, some private insurance companies may not cover damages to specific areas. Familiarize yourself with such policies.
3. Business and Home Size
Bigger businesses suffer more losses because they have more assets and an employee load. For this reason, the policy limits your business interruption insurance, and you should be able to bankroll your operating costs until normalcy returns. Large homes typically incur massive losses because personal effects are more than in smaller houses. Additional living expenses (ALE) should be factored into a standard homeowners insurance policy limit.
How to Ensure Your Home or Business Is Adequately Insured
The time to prepare for the coming storm is weeks before the announcement of any impending flood. You must ensure that:
1. Ensure You Have Your Business and Home Insurance
Meet with an insurance agent, like Marine Agency, to clear up any uncertainties about the type of insurance you hold. These meetings help you learn about your hurricane deductible and policy limit and plan accordingly.
2. Make a Complete Inventory of Home and Business
An accurate and extensive inventory helps you gauge the cost of your belongings and business assets. The inventory will guide you to know what your insurance covers in replacement value or cash value. Pictures and video evidence speed up insurance claims because they are verifiable sources of proof.
3. Make Sure ALE, Employee Payroll, and Relocation Expenses Are Covered
You would need to relocate to a new area for the period preceding the stability of business operations and when repairs are ongoing. Note that the required amount for relocation depends on the location for how long you will be away. For businesses, employees’ salaries and wages should also be covered.
Key Takeaways:
- Only 10% of the businesses that survive disasters make it past two years.
- Building structure, location, and size determine the potential costs of your insurance policy.
- Take a complete and verifiable inventory, and know your insurance policy limits for fast claims.
Insure Your Home and Business Against the Coming Hurricane Season With Marine Agency
Marine Agency provides homes and businesses of all sizes with flood insurance plans and services. With hurricane season upon us, you must begin insurance preparations soonest. Call us at (800) 763-4775 or email us at info@marineagency.com for your insurance issues. Get a quote today!
