Flood insurance helps protect your assets from dangerous flood conditions. It can cover things like water damage and mold remediation. Many commercial insurance policies let you add on business interruption insurance to ensure you can afford to keep your business open once you’re done cleaning up. How do you know whether you need flood insurance, though?
Insurance Requirement
Many policies in high-risk areas require flood insurance. This ensures that business owners are covered when disasters strike. However, insurance companies may also mandate specific protection, such as sandbags or waterproofing the basement, to ensure minimal damage.
Risk Assessment
FEMA provides a map indicating which areas are considered prone to floods based on where floods have recently happened. You can also conduct your risk assessment. Waterfront properties near a river or ocean are at risk for floods. Properties in locations that are prone to hurricanes are high-risk properties as well. You may need flood insurance from Birmingham Insurance Agency LLC in addition to hurricane insurance.
Climate Change
Always consider the way the changing climate has impacted the area. Recent weather patterns indicate that Birmingham, AL, has seen more rainfall and frequent downpours, increasing the risk of flooding. A rising sea level also puts Alabama homes and businesses at an increased risk. As the water temperature worsens, hurricanes become more prevalent and stronger, often leading to flooding.
Due to their location, many homes and businesses in Birmingham, AL, are at an increased risk of flooding. However, most homeowners insurance policies specifically exclude flooding, making it crucial to invest in flood insurance. Contact one of our experts at Birmingham Insurance Agency LLC to discuss your risk factors.
