If There's Any Time You Need Flood Insurance in Florida, It's Now

If you own a Florida business and you haven't invested in commercial flood insurance to protect it, you're asking for trouble. April 2104 saw the worst local flooding in a generation, according to NBC News, with more than 2 feet of rain falling on Pensacola in scarcely more than a day. But that deluge may only signal worse to come, because August and September represent the peak activity for tropical storms, hurricanes and flooding in Florida. Now is the time to take out that policy and give yourself some much-needed peace of mind before the waters rise again. 

Flood insurance is your umbrella against disaster.

The Reason for the Season

Why is Florida so prone to flooding? Its position between two enormous bodies of the water -- namely, the Gulf of Mexico and the Atlantic Ocean -- makes it vulnerable to tropical storms on both sides. Hurricanes not only beat against the coast and run roughshod over cities, but they also cause the state's many rivers and wells to overrun. Heavy rainfall can create floods that buffet local homes and businesses at any time of year, making flood insurance an essential form of protection for anyone who owns either kind of property. During the summer, however, the risk of flooding becomes even greater, and it continues to be a special concern until hurricane season finally blows over in November.

Floridians see plenty of water.

Rates and Risks

While every Florida business owner needs commercial flood insurance, some need it more urgently than others due to their specific location. The state views its topography in terms of five different flood zones. Zones B, C and X are considered low-to-moderate risk areas, while zones A and V are considered high-risk areas, according to Floodsmart.gov. Your insurance agent can identify which zone your property sits on and what level of risk it faces. This in turn will affect your premium rates. If you're in Zone B, C or X, you can obtain a Preferred Risk Policy that covers either your building and contents or the contents alone. According to Floodsmart's 2013 numbers, an annual "contents-only" policy in a low-to-moderate risk zone can cost as little as $185, while a building and contents" policy can start at $643. (You'll pay more if your facility has a basement or other below-ground levels.) 

These premiums get you $50,000 coverage for each type of coverage you purchase -- for instance, $50,000 on the building and $50,000 for its contents. If you're in a high-risk zone, you'll have to purchase a Standard Rated Policy. This requires you to buy separate plans to cover your building and contents.

Negligence Can Cost You

What is the cost of not purchasing commercial flood insurance? Apart from the incalculable degree of disruption to your business, you'll most likely have to turn to FEMA for a disaster relief loan. These loans cost business owners considerably more than that flood insurance policy would have, because they're expected to repay the entire loan amount plus interest. Additionally, the process of applying for disaster relief in the immediate of a natural disaster is a chaotic one to say the least. Purchasing flood insurance allows you to take a proactive stance as opposed to a reactive one so you can protect your property in the most orderly and cost-effective manner possible.

Don't let a Florida flood sink your business. Take the simple step of consulting your insurance agent about commercial flood insurance. When those storms come, you'll be glad you did!

William Reynolds writes website content, print marketing content and audio/video scripts on a wide range of topics, including commercial insurance tips and issues.

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