The Difference Between Storm Damage and Flooding
If your commercial property in Beverly Hills, CA gets walloped by a big storm, it might not matter much to you if it is called a storm or flood damage, but it will probably matter to your insurance company. The two areas of damage are handled differently, and your commercial insurance property is not likely to cover flooding that rises up from the ground. Typical commercial insurance policies cover damage caused by wind, rain, hail and roof leaks. These events result in water and property damage and can eventually lead to mold growth if not addressed quickly.
The Definition of Flooding
The Federal Emergency Management Agency defines flooding for legal purposes and the payout of insurance claims. The characteristics of a qualifying flood event include the following:
The water event was of a temporary nature
An inundation of water or mud occurs on normally dry land
The water coverage is of two acres or more
The water enters the property from the ground up as opposed to the sky
Flood insurance is covered by the National Flood Insurance Program, though you must still go through a regular insurance agent. If you cannot find an agent that deals with this insurance for flood damage, you can call the NFIP for referrals.
The Definition of Storm Damage
Any water damage that is not temporary and does not originate from the ground is likely to be covered by your commercial policy, though always check with your agent for specifics. This broader coverage typically includes damage caused by broken pipes and other plumbing problems. It is important that a company has the appropriate insurance to protect it from unexpected and potentially expensive weather events. Whether it is flood damage or storm damage, it is also crucial to mitigate expenses from either situation.