You may have already purchased comprehensive property damage insurance for your sports arena, including adding business income loss and extra expense coverage to protect your investment after a severe storm hits. However, windstorms cause unique damage and have special coverage exceptions that can leave arena owners underpaid for their losses. Attorney Bill Voss explores types of overlooked property coverage and wind damage extensions that can help repair and reopen a sporting venue.
Special Wind Damage Concerns for Owners of Stadiums and Arenas
Owners will have to close their doors to the public after a windstorm, and may only admit ticket holders once repairs are complete. For this reason, seasonal and special event coverage is one of the most important insurance extensions for sports arenas and stadiums. If your venue hosts an annual tournament, charity fundraiser, rival team championship, or major televised match, the loss of profit from this single event may make a significant portion of the year’s profits. Similarly, damage to baseball fields during the summer can cause closures that deprive stadium owners of profits during the busiest time of year.
Owners should check their policies carefully to ensure that they will be covered if they experience:
- Texas coastal storms. Insurers may impose wind and hail exclusions for commercial properties along the Texas coast, such as in Galveston and Harris Counties. Businesses in these areas can obtain coverage through the Texas Windstorm Insurance Association (TWIA), but all structures must be certified as compliant with windstorm building code requirements to be eligible for TWIA coverage.
- Equipment breakdown. Windstorms often result in power outages, which can cause the loss of refrigerated foods, the ability to use credit card readers or cash registers, and provide lighting and heating for games. Equipment breakdown coverage can cover the costs of an extended power outage that causes spoliation and income loss.
- Multiple perils. High winds often travel hand-in-hand with other hazards that may not be covered under the same commercial policy, such as flooding. Insurers may apply the doctrine of concurrent causation to deny claims where damage has resulted from a combination of covered and non-covered perils.
If you are struggling to recover after a severe wind storm, our attorneys can work to get full and fair payment from your commercial insurance carrier. Simply fill out the form on this page today to contact an insurance attorney at the Voss Law Firm or order a free copy of our book, Commercial Property Owners Must Read This BEFORE Filing an Insurance Claim.