A few days ago, South Africa suffered a horrific flood. Before March ended, we witnessed a water surge in New South Wales. Sadly, we will continue to see these for the rest of our lives.
We must protect ourselves, including our properties and businesses, from calamities. Doing this will prevent financial ruin brought about by the floods. As an entrepreneur, you might be hesitant to purchase flood insurance because you struggle to balance a tight budget. However, this investment is necessary to protect your assets.
If you cannot afford to purchase flood insurance for your entire enterprise, there might be some ways to protect your business financially without breaking the bank. Here is how:
Risk Assessment
First, you need to perform a risk assessment to help you understand the risks your business faces and how much flood insurance you need to secure your assets. You may want to hire a qualified professional to assist you. You might want to consider the following:
- What is the potential damage to the business?
- What is the potential damage to the building?
- How much could you lose in the event of a flood?
- What is your financial risk tolerance?
Regardless of the answers, you need to know the risks. This assessment will include risk mapping and vulnerability analysis. A risk map will highlight the areas prone to floods, while a vulnerability analysis will help you determine your business’s risks.
Building Inspection
After performing a risk assessment, you need to have a building inspection. The building inspector will help you identify any existing issues. You can determine any potential problems that might occur.
You have to know the condition of your building, especially the integrity of the roof and the walls. The top should be checked for leaks and other damage.
The walls and foundation should be examined because floodwater can damage them. A check of the basement is also recommended. A professional will be able to tell you if the building is susceptible to floods.
Property Purchase or Lease
If you are leasing the property, your landlord should be required to purchase flood insurance for the property. You can present the risk assessment, building inspection report and the lease to your landlord. If you are buying the property, you need to purchase flood insurance.
If you have an existing mortgage, you might be able to include the property in the coverage. You can talk to your bank to know more about this.
Investing in Flood Insurance
If this property is a business location, you need to invest in flood insurance. It will cover the building and the contents and equipment inside it, too. You will face a severe problem if you do not prepare for the flood damage.
If another flood hits your business, it will depress your chances of recovery. It will complicate your ongoing operations, and you might think twice about opening your company again.
Conclusion
A business can quickly recover from an event like a flood. However, it needs a lot of resources to do so. It will take time to repair the building, fix the damaged equipment, and replace the contents. It would help if you were ready for this, and you might require additional funds for this. You can have a business line of credit or a loan to help with the expenses.
Or better yet, get coverage from Quesurance. We provide flood insurance for Florida residents. Do not leave your future to chance, so call us now for a quote!
