Property insurance policies usually exclude
coverage for flood damage. Find out from your
local government office or your commercial bank
whether your business is located in a flood zone.
Also ask around to find out whether your location
has been flooded in the past. Government projects
to map flood zones may be slow to keep up with
new developments.
The federal government requires buildings in
flood zones that don't conform to flood plain
building codes to be torn down if damage exceeds
50 percent of the market value. Consider
purchasing "ordinance or law" coverage
to help pay for the extra costs of tearing down
the structure and rebuilding it. If your policy
contains a coinsurance clause, make sure your
property is sufficiently insured to comply with
the clause.
