Protect your residents, properties, and bottom line.
As a business, you likely have property insurance to protect your buildings from fire, theft and vandalism. However, there’s a particular kind of issue that may not be covered: water damage.
Many property insurance policies don’t cover damage caused by water. This gap can end up costing you thousands, putting financial strain on an enterprise already taxed by reduced productivity.
If your property insurance doesn’t cover water damage, what can you do? Fortunately, you have options.
What Is Water Damage Insurance?
Water damage insurance covers structural damage and health hazards caused by excessive water. Flooding can affect all aspects of business, from degrading walls and floors to making a store unsafe for employees and customers.
When you’re in this scenario, you need to act as quickly as possible; the longer you wait, the more likely you are to see secondary issues that will end up costing more time and money to fix. However, restoration services can cost upwards of $10,000; if you’re a small business, you may not have the cash on-hand. Proper coverage provides the necessary resources to get your company up and running as soon as possible.
What Kind of Damage Is Covered?
Water damage can come from a variety of sources:
Broken HVAC systems
Any of these factors can cause massive flooding, which may soak carpet and ruin hardwood floors. You also have to worry about moisture accumulating in unseen places, such as crawlspaces, inside walls, in attics and under flooring. Depending on the source, the water may also be hazardous; sewage lines contain dangerous bacteria that can make people ill if not properly cleaned. There’s also the risk of mold, which flourishes in damp environments and poses a respiratory health hazard. Your water damage insurance should cover water drainage, cleaning and restoration costs to ensure that all these issues are taken care of in a timely manner.
How Can You Limit Damage?
It’s important to note that water damage insurance doesn’t cover issues caused by negligence, so you must take reasonable steps to prevent flooding. For example, you should do maintenance to avoid burst pipes, address leaks as soon as you’re made aware of them and clean out gutter systems on a regular basis. You should also do the following:
Avoid storing valuables on the floor
Address any gaps or cracks in the foundation or building exterior
Know how to operate the emergency shutoff for your building’s water supply
Clear snow and ice from rooftops
What Businesses Can Benefit From These Policies?
Every company should have water damage insurance, but there are several kinds of companies that are the most as risk:
Those in areas with freezing temperatures, as this can cause burst pipes
Those in areas with intense seasonal storms that may cause flooding
Those in areas prone to natural disasters such as hurricanes or tornadoes, which can cause damage to water mains and other systems that may result in flooding
Even if your enterprise doesn’t fall into the above categories, your building may suffer a leak that soaks inventory or a fire that activates the sprinklers, dousing expensive equipment. You never know what may happen, but you can be prepared for the worst with a water damage insurance policy.
Where Can You Get Comprehensive Coverage?
When you need insurance, you want to make sure you’re getting the best deal. At HUB International, we understand that every business has unique needs and we’re dedicated to connecting you with the right insurance for you. With the help of our experts, you can be ready for anything life throws at you. Contact a HUB water damage insurance expert to get started.