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Flooding is the most expensive natural disaster in Canada, and it’s becoming even more common as rising global temperatures lead to increased rainfall across the country.
Protecting commercial real estate against flooding is important because it can save lives and protect property owners from the cost of damage or business disruption. Keep reading to learn what you can do to stay afloat, even if your commercial building is affected.
The expense of flooding
A flood can happen at any moment to a commercial property. It could have collected several feet of water and you might not be able to enter the building, use equipment or access important documents. Due to this natural disaster happening, you might lose clients, miss deadlines, or even be forced to close your business.
Flooding has had negative financial impacts across Canada. In addition to the financial cost, floods can have a human cost. The good news is, there are things you can do to keep your building and the people who work there safe. Plus, the right insurance policy will help you deal with the financial impact of flooding.
How to prepare for flooding
Natalia Moudrak, Director of Climate Resilience at the Intact Centre on Climate Adaptation (a Waterloo-based research institute that’s helping Canadians adapt to climate change) recommends six practical measures you can take to stay a step ahead of the storm.
- Have an emergency plan
The emergency response plan for your building should include procedures for safely evacuating its occupants in the event of a flood. Make sure your building operations staff and tenants are aware of the guidelines and conduct an annual drill of procedures.
- Update emergency contact information
Make sure that you have the current contact information for risk management consultants, insurance adjusters and insurance brokers on hand so that you can move swiftly in the event of a flood. As well, you should maintain up-to-date contact information for building tenants and other stakeholders so you can easily communicate with them in an emergency.
- Back up insurance documentation
Any paperwork that you need to access business interruption insurance —such as financial statements, lease agreements and inventory counts—should be updated regularly, backed up electronically, and stored offsite. When selecting a storage site, consider a location that is unlikely to be hit by a flood at the same time as your building.
- Inventory critical equipment and supplies
Invest in critical flood-fighting equipment and supplies, such as sandbags, sump pumps, portable generators, fuel, portable lights, extension cords, dehumidifiers, and protective clothing, and store it onsite and above the likely flood level.
- Install a backup generator
Have an onsite backup generator in place that can power at least one elevator, all the building’s sump pumps and heat pumps, the boiler, smoke evacuation fans, the fire sprinkler and fire alarm systems, stairwell pressurization systems, and emergency lighting equipment for 24 to 72 hours.
- Equip elevators with water sensors
Any elevators in your building should be equipped with water sensors that prevent them from proceeding to levels that are flooded. These sensors can save lives.
Are you unsure your commercial real estate will be protected in the event of a flood? Reach out to your insurance broker to discuss your options today to learn more about protecting your commercial property from floods.
SOURCES
https://www.pbo-dpb.gc.ca/web/default/files/Documents/Reports/2016/DFAA/DFAA_EN.pdf
https://www.canadianunderwriter.ca/insurance/commercial-property-claims-are-sharply-increasing-and-heres-why-that-wont-stop-1004196593
https://www.getprepared.gc.ca/cnt/rsrcs/pblctns/flds-wtd/index-en.aspx#s6
https://www.theglobeandmail.com/canada/article-how-effective-are-sandbags-a-look-at-the-flood-prevention-tool-that
