We’re back with more tips on staying prepared for disasters! Today we’ll cover a topic that can quickly become confusing. In a city like Houston, it is necessary to assess your flood risk where you live or operate your business. Are you near a bayou? Does your home or building sit at street level, or is it higher off the ground? Regardless of your answers to these questions, as a Houstonian, you most likely need flood insurance.
According to this article in 2017, over 50% of Houstonians don’t have flood coverage. This is especially troubling considering that most of the areas in Houston that are at risk of flooding aren’t considered designated flood zones.
But we are here to give unsolicited advice. GET FLOOD INSURANCE and then read your policy cover to cover; it is very short. If you don’t know what your insurance says, then you won’t know what’s covered.If you have questions, reach out to your agent and get the answers you need.
Here are some different types of insurance for your physical location(s) to consider:
- General Casualty
- Flood – building and contents (this is a completely separate policy underwritten by the US government)
- Business Interruption with Dependent Property (if there are any)
- Extra Expenses / Ultra Coverage
- Sign Insurance
- Electronic Equipment
- Ordinance of Law upgrade
- Umbrella Liability
When disaster happens, there are some things to remember when filing a claim. Be aware of mitigating events–wind damage is going to be better than flood damage. For example, during Hurricane Ike our roof came off and then the rain poured into the bakery, ruining everything. The mitigating event was the roof coming off, not the flood of water that came in because the roof came off. So, this claim was a general casualty claim, not a flood claim, and was covered at full replacement value.
Perhaps consider an independent adjuster–they are hired independently from insurance companies and work for you. They take a percentage of the overall claim for payment. If you are not good at details and paperwork, you might consider one. There are differences in insurance adjusters, but the most important thing we can suggest when dealing with them is to develop a partnership–you’ll be working with them closely.
Did you miss our other Three Brothers Bakery Disaster Preparedness blogs? Check them all out here.
Have questions? Leave a comment here or on our Facebook post, and we’ll do our best to answer.