Why you Require to Insure Your Restaurant Against Flooding
When it comes to setting up a restaurant you will find many investors asking themselves whether there is need to have a flood insurance policy. Since you are passionate about operating a restaurant because that is where you get a livelihood, then it is important that you operate in a clean and dry place to observe hygiene. Flood is a natural disaster that can ruin your investment once it occurs. Conclusively, some people do not find the need for a flood insurance policy especially if they are located in areas which are less prone. Other insurance covers do not cater against floods once they occur and, therefore you require a policy which covers floods.
To all restaurant owners once they purchase business owners insurance policy that does not cover flooding. Once a flood occurs it can destroy all your properties and the resources available. Floods are not included because of the cost of this insurance covers which caters against severe weathers. Some floods do not occur as a result of weather that is why they are not covered. It can be triggered by human activities or poor sewerage systems.
In areas where restaurants were attacked by flooding, in the aftermath the owners had to replace the carpet, tables chairs and even the wall. The employees will also have to speak about it in the next few weeks since in most cases they were also affected. You will be amazed to find out that your insurance company did not talk about the matter since it was flood damages and not water. According to insurance emergency policing, an area is considered flooded if it was previously dry. Also the flooding can be estimated with the total acreage covered entirely with either water or soil and even both.
Investors who seek financial mortgage assistance from the lenders are advised on the necessity of having a flood insurance cover. Therefore, to areas which are more prone to flooding the lender will ask you for a flooding insurance before giving you the loan. Prevention is better than cure, no matter the amount of years passed since the areas where your restaurant is located was attacked by flooding you should take caution before it occurs.
Apart from just taking a flood insurance cover depending on your location, there are other factors which must be considered. The standard amount of insurance flood policy that you can take is an estimate of $ 1M. For the purpose of the building $500,000 and the contents available inside $500,000 the money is divided equally. Different insurance companies have varying amount of flood policy depending on whether the firm is privately or publicly owned.