When you receive a claim denial for windstorm losses on a commercial or business property, it’s easy to panic, but there could be a simple reason for the denial. In fact, numerous business owners every year make a simple and obvious mistake with their wind-damage claims: they submit their claims under the wrong policy.
Businesses can vary a lot in type and size, so the insurance coverage they require can also vary quite a bit. Whether you own a small, local business or a number of commercial properties around the nation, your windstorm coverage could be more complex than you realize. Wind damages may be covered:
- By a separate policy. Some businesses may carry a separate insurance policy that covers certain kinds of storm and water damages, which might include coverage in the event of a windstorm. If you are sure how your business is covered in a windstorm, take the time to find out now.
- By multiple policies. Wind damage can be especially tricky for policyholders because high winds can impact a property both directly and indirectly. For example, it’s possible—depending on the policies held—that direct wind damage to roofing materials may be covered, while water damage from a roof leak may not.
- Not at all. For some businesses, wind-related losses can fall into a coverage gap. Your coverage may exclude certain kinds of wind damage or damage to a certain location, but don’t wait until the worst happens to find out about policy surprises.
With so many coverage possibilities, it’s no wonder that commercial policyholders sometimes make simple mistakes with their claims. Before you decide to submit a windstorm claim for your commercial property or accept a denial, take the time to carefully look over the coverage that protects and make sure you’re submitting your claims correctly.
For more information about avoiding some of the most common mistakes policyholders run into when filing commercial insurance claims, take advantage of a free copy of our highly informative book, Commercial Insurance Claims: The Basics.