What Is Included in Commercial Insurance Fire Damage Policies?

9/4/2020 (Permalink)

Here's What Is Usually Covered By Most Insurance Policies

Fire damage is one of the most frequent insurance claims in the United States. In 2017 alone, almost 500,000 structure fires were reported, causing around $10.7 billion in damages. Not only do fires cause damage with the heat and combustion, but smoke gets everywhere and fire-fighting substances, such as water and foam, cause tremendous damage. Here’s what is usually covered by most insurance policies in Edmond, OK, although it should be noted that each company has different terms.

Structural Damage

Depending on the policy and property ownership, your policy may cover repairs and replacements to the structure, including

• Roof
• Supporting structure
• Stucco, siding and concrete
• Windows
• Plumbing and heating systems
• Interior walls, framing and painting
  
  

Ask your insurance adjuster if these are covered by your policy. Even if you rent your location, some policies will cover these types of damage, often under general liability, in what’s called “damage to premises rented.” Note that your coverage should include replacing items, such as carpet and roofing tiles, if a perfect match isn’t made between the replacement items and older ones, under the “uniform and consistent appearance” clause.

Fire Damage Coverage

Most items are covered by the majority of commercial property insurance policies. However, there are exceptions, and terms of individual policies can vary widely. Some policies cover actual cash value (the original value of the item minus accumulated depreciation), while others cover replacement costs. Replacement policies cost more but can help avoid massive out-of-pocket expenses.

Your policy may cover fees charged for fire-fighting services and smoke damage. Some policies include coverage for loss of business income during the disaster and the recovery time. Mold damage may be included, but this is now often being specifically excluded, so check to make sure you have a mold endorsement.

Fire damage to your business in Edmond, OK, doesn’t have to be the end. If you are careful and read your insurance policy, most forms of fire mitigation can be covered, not only providing peace of mind but possibly avoiding a bankruptcy and closing of your business altogether.