Property

FLOOD INSURANCE
The National Flood Insurance Program is a federal program which provides affordable flood insurance to individuals in flood-prone communities.

Who can buy flood insurance?

• Property owners, renters and business people in designated flood hazard areas.

What losses are covered by flood insurance?

• Loss of insured property resulting directly from flooding is covered. For insurance purposes, flood conditions are defined as: flooding of normally dry land areas from the overflow of inland waters such as rivers or streams; the rapid buildup of surplus waters; mud slides caused directly by an accumulation of water on or underground and the collapse of subsidence of land along the shore of the body of water which can be traced to unusual current or wave conditions of inland waters.

Normal runoff resulting from rain and isolated incidence seepage in basements when general flood conditions do not exist is not covered by Federal Flood Insurance policies. Sewer backups are covered only when they are clearly a result of a general condition of flooding.

How long does it take for the policy to take effect?

• In most cases, a 30-day waiting period (after date of application) is required.

What type of coverage is available for Commercial Property?

• Building - Maximum Value $500,000
• Business Personal Property - Maximum Value $500,000

Coverage is provided on an Actual Cash Value Basis and usually carries a $500 or $1,000 deductible.

Who writes this type of coverage?

There are several standard carriers that will write the Flood Coverage. One important note to make is that the premiums are the same no matter which carrier is quoting/writing the coverage. The rates are established by the Federal Government, and all carriers must follow the guidelines established.

BOILER & MACHINERY back to top
SYSTEMS BREAKDOWN COVERAGE
Losses from Mechanical Breakdown, Electrical Arcing and Damage to Steam Boilers & Hot Water Heaters are losses that are EXCLUDED under the standard Commercial Property Form.

Systems Breakdown provides coverage for loss to covered "business equipment," boilers and machinery caused by:

• Mechanical breakdown
• Artificially generated electrical current

• Explosion of steam boilers and pipes

"Business Equipment" may include:

• Telephones
• Fax machines, copiers & printers
• Bar-code scanners
• Heating & air conditioning equipment
• Drill presses, lathes, planers & routers
• Computer controlled equipment

• Other electrical & mechanical equipment

WHAT CAN EQUIPMENT BREAKDOWN COST YOUR BUSINESS?
An air conditioning compressor fails.

• Cost to repair - $32,218

Electrical system damaged by arcing, causing 80% of a large office building to lose power.

• Cost to repair - $234,447

A refrigeration motor shorts out and perishables lost.

• Cost of loss - $43,722