Tsunami Is Not Water Damage, Huh?

Now that we’re 5 weeks past the Japan disaster, the most common question I’ve received from business owners is, “If I have ‘water damage’ coverage on my property policy, would that have covered me if my business had been hit by the tsunami?”  The answer is a resounding NO.  Water Damage is not Flood.  The insurance companies define water damage as leaking pipes, drains backing up, etc.  For a tsunami, you would need flood insurance.  And even that coverage has its limitations, check with your insurance advisor.  To find out if you’re business (or residence) is in a flood zone, go to www.freeflood.com.   By the way, just because you’re not in a flood zone doesn’t mean you won’t get flooded.  It just means the likelihood is lower.  It also means flood insurance is cheap.