Understand Storm Insurance Coverage Before the Wind Blows
Before the Wind Blows, Know Your Storm Insurance Coverage
After major storms hit the nation more than twenty years ago, insurers realized that the costs of storm insurance coverage could be much higher than they had previously estimated. Once that realization hit, insurers made changes to reduce the amount they would have to pay out in future storms. Today, many deductibles are based on the value of the property and the specific type of coverage property owners want. (In some states, such as Florida, some of these variables are determined by state law.)
What Can You Expect From Commercial Storm Coverage?
To a large extent, the rate of your deductibles and specific variables of coverage will be affected by state law, even outside of Florida. However, it is fairly common for commercial property insurance to compensate businesses for financial losses due to storm damage. This type of insurance coverage generally protects:
- The contents of your building, such as inventory, office supplies, furnishings, and other goods directly owned by the business
- Cleanup and restoration efforts, including the services of storm remediation specialists
- Damage due to falling debris that is directly related to the storm
Circumstances That Could Reduce Your Coverage
There are certain circumstances that may negatively affect your coverage:
- Normal wear and tear probably isn't covered by your policy, so if your aging roof becomes worse after a storm, you may not have insurance protection.
- If your policy doesn't reflect the cost of rebuilding your property, don't expect to get that much financial compensation.
- When property owners fail to appropriately maintain their property, they may not be covered. For example, if you have an old tree on your property and it falls over during a storm, the insurance company may deny the claim because the risk was present before the storm hit.
It's always important to discuss coverage thoroughly with your Portland, ME, storm insurance agent. Don't leave your property and financial security at risk because of a misunderstanding.