Hailstones can cause devastating leaks and roof damage for homeowners, and that destruction is compounded for owners with multiple rental properties. Extensive damage can cause considerable out-of-pocket costs for owners and landlords, especially if their insurance coverage contains high deductibles and numerous exclusions. Attorney Bill Voss takes a look at hail coverage options for rental properties, allowing owners to make the selections that maximize their payouts.
Coverage That Allows Owners to Recover More of Their Hail Damage Costs
While taking the right steps after hail damage to your business goes a long way to protecting your claim, you can protect your investment long before damage occurs by carefully choosing your coverage. A bare-bones policy may save you money in premiums, but will likely leave you high and dry when an adverse event occurs.
Some special hail coverage options that are worth looking into include:
- Full replacement cost coverage. Many policyholders who selected actual cash value rather than replacement cost coverage are shocked to discover that their claims are drastically reduced by depreciation—sometimes by thousands of dollars.
- Lower hail deductibles. Insurers may offer a lower deductible specifically for hail or wind damage that differs from the regular policy deductible, making repairs more affordable and turnaround times faster.
- Ordinance coverage. This coverage is usually offered as a special endorsement and provides payment for any building code upgrades that are required by law as you rebuild.
- Cosmetic coverage. Some commercial policies exclude repairs for damages that make no functional difference to the property. While cosmetic damage may not pose a threat to the livability of the unit, it can make the rental unsightly and cost you the income of potential renters.
- Optional coverage. Tenants may have to relocate while roof repairs are completed, depleting your rental income at a time where your expenses are especially high. Optional coverage such as business income replacement and extra expense coverage can close the financial gap in the weeks during construction.
If you are having trouble getting the full value of your hail damage claim, the Voss Law Firm can investigate the details, examine your policy, and fight on your behalf. Simply fill out the contact form on this page today or order a free copy of our book, Commercial Property Owners Must Read This BEFORE Filing an Insurance Claim.
