What Commercial Tenants Need To Know About Flood Damage

12/28/2019 (Permalink)

Renter's insurance helps pay for the cost of replacing damaged personal property

Important Facts to Know About Flood Coverage

If you are a tenant in a commercial building, you may think that your landlord will cover the cost of any flood damage to the property. However, that is not actually the case. Both tenants and landlords have some financial responsibilities following an emergency. That means you should buy renter's insurance to help cover the expenses related to storm cleanup. Here are some important facts to know about flood coverage:

• It is not included in a typical commercial insurance policy
  
• It can be purchased separately
  
• It may require a waiting period before going into effect
  
  

Because of the aforementioned waiting period, you should purchase flood coverage as soon as possible. This will ensure you are ready when the rain comes.

Tenant's Insurance

What exactly does a tenant's flood policy cover? In general, renter's insurance helps pay for the cost of replacing damaged personal property. For commercial tenants, this includes business assets and documents. Be sure to keep track of any items that were harmed by the storm. You can then submit that list to the insurance adjuster for reimbursement.

Landlord's Insurance

When you rent a commercial building, make sure your landlord has its own flood insurance policy. This will cover the costs of structural damage to the property. Any services provided by the landlord, such as plumbing and wiring, are also the building owner's responsibility. After the storm, the landlord should also get the building back to a habitable condition as soon as possible.
Of course, it is sometimes unclear exactly what counts as personal property versus structural damage. If you are confused about whose insurance will pay for flood cleanup services or other similar expenses, you can consult your agent, attorney or accountant.
By purchasing renter's insurance, you can protect your Henning, MN, business. A company with proper insurance coverage is less likely to suffer severe financial hardship due to storm damage.