Types of flooding
According to the Insurance Institute for Business and Home Safety (IBHS), a nonprofit insurance industry research organization, there are four major types of flooding:
- Rising water from melting snow or large drifts of ice.
- Fast-moving water from overflowing rivers, in which case the water's lateral force is the most destructive aspect.
- Levee or dam breaches, which release held-back river or ocean water.
- Flash flooding resulting from extensive rainfall all at once and severe thunderstorms that linger or tropical storms moving inland.
It is important to note that floodwaters with large amounts of dirt and debris or that are contaminated with waste or chemicals can increase the amount of damage to property.
In terms of structural integrity, the depth of floodwater is particularly important to note. The IBHS states that floodwaters that go beyond three feet may crack masonry and other foundation materials, potentially impacting the structural integrity of a building.
How should I protect myself?
If your business is in a high flood risk area and there is a mortgage from a federally insured or regulated lending institution on the property, flood insurance is usually required by the lender. If you are not is a high flood risk area, purchasing flood insurance can prove to be a wise choice. According to the I.I.I., few commercial property insurance packages cover flood or water damage. In addition, floods can happen in all areas including areas deemed to be ‘safe’ from flooding. If your business is in the general vicinity to a body of water or your area is prone to heavy rain fall, a flood policy can be the protection you need.
The Federal Emergency Management Agency, in collaboration with insurance companies involved in their NFIP Write Your Own program offer flood coverage to business and property owners across the country. Speak with an independent flood insurance agent to learn more about the coverages offered by the NFIP.