Although water is an essential building block of life, it can be extremely costly and destructive force if it’s in the wrong place, such as your business. As a result, it’s important for businesses to have sufficient commercial water damage insurance in place. Continue reading to learn more about water damage insurance for your business.
What Business Needs Water Damage Insurance?
Almost every business is highly susceptible to suffering losses from water damage, either directly or indirectly. Most businesses have an HVAC system in the building, which could suffer busted pipes and damage expensive equipment. At the same time, a leaking pipe on a sink or toilet could lead to thousands of dollars of water damage. In addition, several businesses are in colder regions of the country. As the temperatures drop, pipes will commonly freeze and suddenly burst, which can cause significant water damage. However, the most common source of water damage for businesses are floods and storms. The best solution is to have the appropriate water damage and flood insurance policy in place to protect your business from these expensive risks.
Understanding Water and Water Damage
With commercial property insurance policies, water and water damage are viewed as two different perils.
A commercial water policy covers the overflow of a body of water. It’s important that the water comes from outside of the insured building, such as from a nearby body of water or from under it. Sewer backup is a different type of water peril covered in commercial policies.
On the other hand, water damage policies cover water perils from within the structure. Whether it is a damaged HVAC system or from a broken appliance, water damage policies covers freezing, breakage, or the explosion from within.
Consult with Your Commercial Insurance Agent
In any case, there is no clear cut rule for explaining water damage coverage in commercial insurance. Because some policies include and exclude various types of water damage, it’s important to speak with your agent to figure exactly what type of coverages you need. In addition, when you speak to an agent, you will have a clear and concise understanding of what is covered and what isn’t covered under your water damage insurance policy.