A short guide to flood damage insurance for businesses

There is no specific policy titled 'flood damage insurance', but protecting your business premises against the threat of flooding remains important. Protection against the damage caused by flooding usually falls under the coverage offered in property insurances like buildings insurance and contents insurance.

To give you an example, if the structure of your business premises was severely damaged by flood waters, the cost of repairing it would usually be covered under most buildings insurance policies. If items within your premises were also damaged, such as furniture or appliances, the cost to replace these would usually fall under most contents insurance policies.

If you rent your business premises, it’s usually your landlord who is responsible for insuring the building, but you can take out tenants’ improvements insurance if you want to cover any parts of the property you’ve modified.

Not only should you consider protecting your premises, but it's also important to remember the effect a flood could have on your business. Taking out a business interruption insurance policy can cover any loss of income you suffer as the result of flood damage or any other disaster.

You should take the time to read any insurance policy thoroughly as every insurer is different and will offer slightly different terms. For example, in most cases, the term 'flooding' will refer to any escape of water from the sea, a river, lake or canal or from heavy rain. Most policies will also offer protection against other flooding methods like a burst pipe or a broken water tank.

For more information and guidance on flood damage insurance, speak to our advisors today on 01202 754900.