A Quick Guide to Commercial Storm Insurance

2/3/2022 (Permalink)

Severe winds can cause damage to your property.

As a business owner in Lafayette, LA, insuring your property is a no-brainer. However, not all people know specifically how storm insurance works or what it covers. Here are some brief tips to help you understand this often-misunderstood type of insurance coverage.

Categories of Coverage

Not all storms, or deductibles, are created equal. The best way to understand your specific coverage is to read your commercial insurance policy or speak with the agent. Generally, insurance policies reference these three categories:

• Windstorm – This includes any damage to the property resulting from wind or hail that does not fall into one of the other categories.
• Hurricane – The definition of a hurricane differs by state and storm insurance company. Some define it by wind speed; others consider the amount of time between the National Weather Service (NWS) announcement and the time of the damage.
• Named Storm – When a tropical storm is severe and widespread, the NWS names it. For some insurance coverage, this may fall into the hurricane category.

Differences in Deductibles

When you first buy property insurance, you consider your deductible. This is the amount of money that you, the business owner, must pay out of pocket prior to receiving insurance funds. When the damage is the result of a natural disaster, however, people are often surprised that the same deductible does not apply. Instead of a standard amount of money, coverage is a percentage of the total cost for storm restoration professionals to mitigate and repair the damage. A typical rate is between one and five percent.

Whether severe winds in Lafayette, LA, knocks a tree into your commercial building or a hurricane causes significant destruction, understanding storm insurance is critical to getting your business up and running again. When the unexpected happens, take comfort in the notion that your insurance agent and local restoration company are Here to Help.