Does Commercial Insurance Cover Tornado Damage?

While many commercial insurance policies cover tornado damage, you should always review the details of your specific policy before assuming anything. Wind damage coverage is generally included in many commercial insurance policies, but some have exclusions that you should know about. 

For example, some standard insurance policies do not cover “acts of God.” This is a legal term that refers to events outside of man’s control, including tornados, earthquakes, and hurricanes. If you want these instances included in your policy, you may have to purchase separate coverage or an add-on to your already existing policy. A property insurance claim lawyer in Texas can explain more.  

Commercial Insurance May Cover These Losses

Every policy (and every insurance company) is different. So, while the list below explains what could be included in your commercial insurance policy, your coverage depends on what you purchased. That said, business insurance could cover: 

• Property damage: Covers damage to the business property due to fire, storms, vandalism, and other covered perils. This includes the physical building and its contents, such as equipment, furniture, and inventory.
• Business interruption: Provides compensation for lost income and operating expenses if the business is temporarily unable to operate due to a covered loss, like a tornado. 
• Mitigation expenses: The insurance company expects you to prevent further damage to your commercial property by boarding up windows, putting tarps over holes in the roof, and mitigating mold growth. 
• Relocation costs: You could have funds for temporarily leasing a new space or having to move your business to a new location permanently. 

There are exclusions, deductions, and restrictions that may apply. 

What Commercial Properties does Tornado Damage Insurance Cover?

Business owners typically purchase coverage that ensures the operations of: 

• Retail stores
• Restaurants
• Offices (e.g., law firms, accounting firms)
• Manufacturing plants
• Warehouses
• Auto dealerships
• Hotels and motels
• Medical practices (e.g., doctor’s offices, dental clinics)
• Schools and daycare centers
• Farms and agricultural businesses 

Your Commercial Tornado Claim Comes with a Filing Deadline

Many people confuse the state’s civil statute of limitations with the deadline set by their commercial insurance providers. Your insurance company’s deadlines are unique to that organization. You could have anywhere from a few months to a few years to file your claim. Some insurers purposefully conceal these deadlines, hoping to “run out the clock” when it comes to tornado damage cases. 

The state’s statute of limitations for a property damage lawsuit is clearly outlined under Texas Civil Practice and Remedies Code § 16.003. You generally have two years to sue the insurance company if it employs bad faith insurance practices or unjustly stalls the claims process. Most cases do not require litigation to recover compensation, but it’s vital to comply with this deadline to present a strong case. 

Why Would the Insurance Company Contest My Tornado Accident Claim?

Insurance companies exist to make money by selling policies and collecting premiums. Compensating commercial business owners cuts into their bottom lines. So, the claims adjuster may contest your case by employing bad faith insurance practices, which include:

• Refusing to investigate your property’s damage
• Offering compensation not in accordance with the liable policy
• Pressuring you into accepting an unjust offer
• Misrepresenting the liable policy’s terms
• Denying your claim without providing a valid, written reason
• Refusing to acknowledge your claim within the prescribed period

If you’re having problems resolving your tornado damage claim, you could benefit from having an attorney handle the matter. They can hold the insurance company accountable for what you’re entitled to under the liable policy, recovering the funds you need to continue your business’s regular operations.

Considerations After Your Business Sustains Tornado Damage

You want the insurance claims process to progress as smoothly as possible. So, the following considerations could streamline your claim and compel the liable insurer to settle: 

• Mitigate further damage to your property. The insurance company will not pay for damages that happen after the tornado has passed. So, you should mitigate any further damage to your property, which may include boarding up windows, installing a dehumidifier, and preventing infestations. 
• Document all damages thoroughly. Take detailed photos and videos of the damage to both the interior and exterior of your property, as well as any damaged personal belongings. This documentation is crucial for your insurance claim.
• Review your insurance policy carefully. Understand the specifics of your coverage, including deductibles, coverage limits, and any exclusions. This knowledge will help you understand what compensation you may be entitled to.
• Keep receipts for any repairs and temporary measures. Whether it’s for emergency repairs to prevent further damage or for temporary living expenses if your home is uninhabitable, keep all receipts as they may be reimbursable under your policy.

You should also report the damage to your insurance company as soon as possible. This creates a paper trail relating your property’s damage to the adverse weather event. 

You Benefit from Hiring a Texas Wind Damage Lawyer

In the aftermath of a tornado damaging or destroying your commercial property, enlisting a lawyer to manage your insurance claim can be a game-changer. A lawyer who focuses on property insurance claims brings a wealth of expertise and a strategic approach when seeking the compensation you’re entitled to under your policy. 

An attorney from Carrigan & Anderson, PLLC can promote your case’s outcome and hold the insurance company financially accountable. Here’s what to know: 

• They can help you gather necessary documentation and evidence, such as photos of the damage, repair estimates, and records of previous property conditions, to support your claim.
• Your legal team can handle the entire claim filing process on your behalf, ensuring that all necessary paperwork is accurately completed and submitted within the required deadlines.
• In cases where the insurance company denies the claim or offers an unsatisfactory settlement, a lawyer can pursue dispute resolution options, including formal appeals and mediation.

If necessary, your lawyer can file a lawsuit against the insurance company, advocating for your rights in court to secure the compensation you deserve.

Begin Your Free Consultation with Our Wind Damage Lawyers

The longer your commercial business can’t operate because of tornado damage, the more threats to its stability arise. Don’t let an insurance company or its representatives prevent you from accessing the coverage you paid for. Carrigan & Anderson, PLLC is ready to take your call and start your case now. Call now to begin your free consultation.