Does My Business Need Commercial Flood Insurance?
A lot of business owners assume that their OR property insurance will cover the damages that are associated with a flood; but many are surprised to find that their policy doesn’t cover flooding. That’s because the majority of commercial property insurance policies excluding flooding from coverage.
A “flood” is generally defined as “a temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from:
- overflow of inland or tidal waters, or…
- unusual and rapid accumulation or runoff of surface waters from any source, or…
- mudflow or collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves, or…
- currents of water exceeding anticipated cyclical levels that result in a flood as defined above.
You’ll want to seriously consider getting a Oregon commercial flood insurance policy if:
- Your business is located in an area in OR that is prone to flooding, or it is situated near any body of water.
- You operate a business in a location that has cold and snowy winters and warm springs. That’s because snow that melts quickly is one of the main reasons why businesses flood.
- Your business is situated in a climate that receives a moderate amount of rainfall throughout the year. There is always a chance that outdoor drains could clog, and if that happens, the likelihood that your establishment will flood is high.
What Does Oregon Commercial Flood Insurance Cover?
Flood insurance for your company protects one of your most important investments from the damages that flooding can cause: Your business. With this type of insurance, you and your business are protected from the devastating financial losses that can occur with when a flood strikes. Not only does this insurance protect the building your business is located in, but it also protects the items inside your business and your assets.
A commercial flood insurance policy will pay for any repairs that your building may need in the event of a flood. It can also cover the cost of replacing the contents of your building. If mold or mildew forms as a result of flooding, your policy can also pay to remediate it.
Business flood insurance can either be purchased from an insurance agent, or you can buy a policy from a company that takes part in the National Flood Insurance Program. You also have the option to rely on special flooding programs that are offered by the government. It is in your best interest to purchase a policy through an agent, as you will be able to ensure you have adequate coverage for your business.
There are two different types of commercial flood insurance available, and you can choose to purchase one or both options.
- Contents Insurance. This type of insurance covers any inventory, merchandise, equipment, furnishings and other elements that are located inside your business.
- Building Insurance. This type of policy protects your building. If you do not own the building, you can purchase insurance that will cover the value of any improvements that you made to it.
Both of these types of insurance cover up to $500,000 in damages. However, you do have the ability to purchase an excess Oregon commercial flood policy, which will grant more coverage. If your business is valued at more than $500,000, it’s a wise idea to purchase additional coverage.
What Oregon Commercial Flood Insurance Doesn’t Cover
OR business flood insurance typically does not cover:
- Precious metals
- Stock certificates
- Bearer bonds
- Cash
- Trees & plants
- Wells & Septic systems
- Walkways
- Decks
- Patios
- Fences
- Retaining walls
- Storm shelters
- Loss of income
- Vehicles
- Post-flood mold damage
- Sewer backups
How Much Does Oregon Commercial Flood Insurance Cost?
How much does Oregon commercial flood insurance cost? This is the question most on OR business owners mind when they are shopping for a flood policy. Because Oregon flood insurance is not a one size fits all, and there are many factors that are taken into consideration in your premiums – the easiest way to get flood insurance rates is to contact an agent to discuss your situation. Then you can get an accurate flood insurance quote to see the cost.
Below are some of the main factors that make up the cost of a OR business flood insurance policy:
- Your property’s flood risk – what flood zone you are in. More risk = higher premiums, less risk = lower premiums.
- How much coverage you need. More coverage = higher premiums, less coverage = lower premiums.
You can look up your flood zone at:
FEMA Flood Map Service Center: Search By Address. You can also learn about flood insurance requirements for commercial property.
Further Reading On Flood Insurance
Floods can happen suddenly and can do tremendous amounts of damage. Following is some more useful information about flood insurance polices:
OR Commercial Flood Insurance Quotes
Request a Oregon Commercial Flood Insurance quote in Albany, Ashland, Baker City, Beaverton, Bend, Canby, Central Point, Coos Bay, Cornelius, Corvallis, Cottage Grove, Dallas, Damascus, Eugene, Forest Grove, Gladstone, Grants Pass, Gresham, Happy Valley, Hermiston, Hillsboro, Keizer, Klamath Falls, La Grande, Lake Oswego, Lebanon, McMinnville, Medford, Milwaukie, Monmouth, Newberg, Newport, North Bend, Ontario, Oregon City, Pendleton, Portland, Redmond, Roseburg, Salem, Sandy, Sherwood, Springfield, St. Helens, The Dalles, Tigard, Troutdale, Tualatin, West Linn, Wilsonville, Woodburn and all other cities in OR.
Insurance Regulations In Oregon
Let's take a look at insurance in Oregon. There are definitely some state regulations that govern insurance in the state of Oregon. You should become familiar with what these regulations are, even if they do not necessarily apply to you.
You will be much better informed about insurance if you know what types of insurance businesses are required by law and what types they normally get regardless of law. You also may want to know the regulations governing personal insurance such as automobile insurance and life insurance. Let's take a closer look at OR insurance regulations.
Oregon Business Insurance
The first type of insurance that we will start with is business insurance. Specifically, we will be discussing general liability insurance. Commercial liability, sometimes called general liability, is a type of insurance that protects your business in case someone slips and falls on your floor or experiences roofing materials falling on their car that does damage. There are many other situations in which general liability insurance may kick in.
There are also some types of insurance that are mandated by law including Worker's Compensation insurance for any company that has one or more people working for them full-time or part-time.
Oregon does not have any laws stipulating that companies must carry disability insurance like in many states, but if there are vehicles being used for commercial purposes, then they must carry commercial auto insurance.
OR Personal Insurance
There are definitely some regulations that govern the auto insurance that normal motorists are required to carry on their vehicle. These are pretty standard across the states and match what is required in most. In Oregon, you are required to carry 25 000 USD per person for bodily injury and 50 000 USD per accident for the same. Property damage is a little higher than you will find in other states at 20 000 USD per accident and there is also an additional requirement that requires a personal injury protection amount of 15 000 USD per person.
Finally, there are regulations governing life insurance in Oregon as well. Unlike most states, there is no free look period for life insurance. However, there is the normal grace period Of 30 days when it comes to late payments. Lastly, insurance companies are required to make payment within 30 days of receiving notification of the death described in the policy. If they do not make payment within 30 days then the person that is the beneficiary of the policy may receive interest as well.