What Storm Insurance Coverage Do You Need?

9/7/2020 (Permalink)

Did you know that your business could be affected by storm damage no matter where you live?

• Hurricane season affects the East Coast between June 1 and November 30.
• The Eastern Pacific has to worry about hurricane season from May 15 to November 30.
• In 2018, the southern states experienced many deaths because of storm-related flooding.
• Severe weather may lead to hail as much as 2 inches across and winds as fast as 75 miles per hour.

How will your Commerce City, business do if it's hit by any of these storm conditions? Are you prepared with the right storm insurance?

Standard Exclusions for Building Insurance

When you have insurance coverage, you can expect to be covered in the event of fires, theft, vandalism, and windstorms. However, standard property insurance doesn't cover earthquakes, flooding, or hurricanes. You need to add the right policies to get this coverage. Standard commercial coverage is vital for your business, but it isn't enough to protect you from storm-related losses. That standard coverage may also have exclusions for

• Specialized equipment
• Expensive gear
• Inventory stored out of the building

If you run a business out of your home, there may be issues reconciling commercial property coverage and storm insurance for private property.

Replacement-Value vs. Actual-Cash-Value Coverage

Research the difference between replacement-value and actual-cash-value coverage. If your property is damaged or lost, you want to be sure your storm damage insurance will cover the replacement costs of that property. You'll probably pay more for the coverage, but if you're hit by storm damage, you'll be glad for the extra protection. Actual-cash-value coverage takes depreciation into account, so even if you purchased equipment new, you'll get less money after you've owned and used it.

Before your business is affected by storm damage, make sure you have the right storm insurance. If you have more questions, ask local storm damage remediation professionals for area-specific answers.