A Guide to Commercial Storm Insurance

10/28/2019 (Permalink)

Storm damage in Burton, OH

Things You Need to Know About Commercial Storm Insurance

If you own property in Burton, OH, where hurricanes and windstorms cause significant damage, you may be wondering if insurance is available to covers any losses. Because of the increased development along coastal areas, there has been a rise in disastrous losses and massive flood cleanup efforts. Fortunately, insurance companies provide storm insurance. Here are some things you need to know about this type of insurance.

Hurricane Deductibles

Insurance coverage for hurricanes and windstorms is different from traditional insurance. Traditional insurance policies have a dollar deductible that has to be paid before any coverage begins. In contrast, a commercial property that has experienced flood damage would qualify for losses under a percentage deductible. Here are some basics about percentage deductibles:

The percentage that you’re required to pay is based on the value of your property. For example, a $500,000 property with a 2% deductible would necessitate that you pay $10,000 before any insurance coverage takes effect.
With regular policies, the deductible applies with each claim. In contrast, a deductible under storm insurance is calculated per season.

There are typically two types of storm damage: hurricane and windstorm. Under the insurance plan, the natural disaster brings what is called a trigger. This means that a hurricane deductible applies in the specific situation. The state or insurance company determines if the trigger is applicable. Factors such as storm intensity and timing are considered.

State Differences

Hurricane insurance varies by state, so it’s important to check with your insurance carrier about the specific coverage. For example, some states allow for a higher premium in order to have a traditional dollar deductible plan instead of a percentage deductible. Other states in high-risk coastal areas may not have this option.
Commercial storm insurance is available in many states in the United States. Among other things, this coverage can help with hiring professional storm cleanup experts to assist your company after a hurricane hits.