Owners of Texas shopping centers are likely already aware of the high flood risks threatening their businesses. While the National Flood Insurance Program (NFIP) covers flood damage caused by a natural disaster, these policies are limited in the amount and types of coverage they provide. Attorney Bill Voss explores optional endorsements on commercial property damage policies that can help retail owners recover after a flood.
Optional Coverages to Pay for Flood Damage to Retail Stores
Commercial insurers will likely not pay for all flood losses after a natural disaster, but they may offer endorsements to a property damage policy that can compensate you for certain costly effects of flooding, such as:
- New construction coverage. If you are in the process of building an additional wing, repairing or redesigning outdated features, or are constructing a new property from the ground up, builder’s risk insurance can pay for flood losses to structures that are not fully completed.
- Inland marine insurance. Flooding can affect inventory both on and off your primary location, especially if goods in transit are washed away or spoiled due to impassable roads. Inland marine insurance can pay to replace any goods and property lost in transit to or from your insured location.
- Seasonal and special event losses. Shopping centers can do double or triple the amount of regular business during their busy seasons, such as Christmas or the back-to-school rush. Seasonal business insurance can replace revenue if a flood strikes during a particularly profitable time of year, while special events coverage can pay for losses invested in scheduled fundraisers, musical acts, movie premieres, or other events.
- Business interruption. All business owners should purchase as much business interruption insurance possible that applies to all adverse events. This insurance provides payment for up to six months of lost profits that allows owners to cover emergency costs, open a temporary location, pay employee wages, and pay for the increased cost of working until the structure has been repaired.
If you are having trouble getting the insurance coverage you paid for after a flood, the Voss Law Firm can help. Simply fill out the form on this page to get your questions answered by an insurance attorney, or learn more about filing a claim in our book, Commercial Property Owners Must Read This BEFORE Filing an Insurance Claim.