ensuring your business has appropriate water damage coverage
You might be looking at the title of this article thinking… “Why does my business need water damage coverage?”
Well, contrary to popular belief, water damage is one of the leading insurance losses, and can greatly impact your business. In fact, water damage is the second most common insurance claim for businesses.
This considered, it’s important to take the proper steps to mitigate the high risk of water damage by having the proper insurance coverage.
does my insurance include water damage coverage?
It’s important to have the right kind of business insurance for your commercial property. You want a policy that includes commercial water damage coverage.
The types of water damage claims covered by some commercial property insurance plans include:
- Pipe breakage
- Groundwater, and
- Backed-up sewer lines
However, many policies exclude coverage for external flooding and mold-related damage.
For some insurance plans, you can purchase additional protection to your property policy to gain more coverage. There are also other types of insurance policies—for example, commercial flood protection or business interruption insurance—that can help safeguard your business from loss of income if your business has to close due to flooding or water damage.
what qualifies as water damage?
Commercial water damage is the destruction that a water-related issue can cause to your commercial property.
Damage can range from a corroded pipe bursting, a defective or improperly installed fitting can leak, and failed heating systems. All of these damages can result in major non-weather-related water disasters.
Common kinds of commercial water damage can come from many sources on the property. Always monitor your building to be aware of the areas where water damage can occur so you can be prepared if it does.
monitor your building
Pay careful attention to these parts of your property:
- Roofs require maintenance to prevent damage from the elements
- Pipes can easily leak or get damaged from extremely cold temperatures or old age
- HVAC system can also leak or break due to a lack of maintenance or overuse
why is water damage not included in my property insurance?
Commercial property insurance commonly covers the loss of or damage to a property owned by a business. The damage that is covered includes:
- Theft, and
However, most commercial property insurance does not include water damage. That’s why it’s important to know what your policies cover. Flood insurance is actually covered under a separate policy and can be purchased separately.
reach out to benchmark commercial insurance
Water damage is typically affected by the weather or a natural disaster that can create damage to your property—even with preventative measures, you can’t always control what happens.
Having a proper disaster plan, a building with adequate drainage systems, and regular maintenance and inspection schedules will help prevent damage and accidents.
Having a water damage insurance policy provides you coverage to help with the financial liability costs due to water damage. To find out more about water damage insurance and property insurance reach out to us or read on about why water damage is a top insurance loss.