When it comes to flooding, no business is necessarily safe. Of course, some bigger corporations with larger buildings may see less overall damage than the small shop around the corner that is completely ruined, but flooding, in general, has the same reach and effect.
When Hurricane Harvey hit the Greater Houston area in August of 2017, it ended up causing approximately $125 billion in flood damage. Most of that was geared toward homes and infrastructure, but industrial parks, small businesses, and the city’s thriving downtown business district were all victims as well.
For local businesses, such as dry cleaners, it is important to know the severity of damage that floods can cause, not only to small structures and customer’s goods inside, but also the long-term effects of coming back to work, or trying to, after the waters have receded.
Dry cleaners, especially those in areas prone to flooding and strong storms, should be aware of the benefits of having coverage in place to help with the after effects of rising waters. Standard Business Owner’s Policies don’t generally include coverage for Flood, but Irving Weber Associates can offer Flood coverage for dry cleaners, coin operated laundromats, linen suppliers, & commercial launderers.
Understanding Coverage, Risks and Cost
When it comes to understanding different hazard level standards, there are two standards to keep in mind as well as sub-categories that are used to assess your company’s risk.
There are moderate-to-low-risk buildings, in areas that are outside of one percent annual chance floodplain. Other zones are considered high-risk, being in certain floodplains in relation to distance from a river, lake or stream. Another zone is related to certain distances to natural disasters associated with the ocean. If your dry cleaning property is in a high-risk flood area and your mortgage is from a federally regulated lender, then you’re required to purchase flood insurance even if you’re not near a large body of water.
Some factors that influence insurance eligibility and rates include:
- The age of your building
- Your location as well as occupancy
- Location of the lowest floor in relation to the elevation requirement
- The deductible you choose
If your dry cleaning business is in a low-risk area, you are eligible for something called a Preferred Risk Policy, which covers your building as well as its contents for a low annual premium.
Commercial building flood insurance comes in two forms and business owners can buy one or both. They are:
- Commercial Contents, which covers inventory, merchandise, machinery and other contents that add up to $500,000.
- Commercial Building, which covers your company’s building and contents up to $500,000 each.
You may also be offered removal of debris during the process of cleaning up, which is expensive and takes a while, depending on overall damage.
About Irving Weber Associates
At Irving Weber Associates, Inc., we understand what it takes to run a successful Dry Cleaner, Coin Operated Laundromat, or Linen Supply business, or Commercial Launderer, including investing in a comprehensive Insurance Program to ensure that you are financially protected against legal claims. Our program, Fabricare Advantage™, offers specialty coverages including General Liability, Property, Site Pollution Liability, Boiler & Machinery Equipment Breakdown, Workers’ Compensation, Business Auto, and many more. For a detailed look at how we can help you safeguard your business with a custom-tailored package, please contact our experts today at (800) 243-1811.