With major disaster declarations in some parts of the U.S. due to tornado activity, business owners should take a close look at their property insurance coverage and how it will (or won't) respond to claims of windstorm damage.
When reviewing your home or business insurance policy, here are a few considerations:
Does your policy cover claims of windstorm damage? This is the first and most important question you must answer. Examine your policy and determine if it includes coverage for only “named perils.” If so, make sure that windstorm is one of the named perils on your policy. You should ask your insurance agent for information on a different type of policy, which is often called “open perils.” This type of policy usually provides better coverage for many types of losses, including windstorm.
What is your policy's deductible? This should be an easy question to answer; the deductible amount typically appears on the Declarations/Information page of your policy. Should you wish to raise or lower your deductible, contact your insurance agent.
Is the deductible different for claims of windstorm damage? In some cases, the policy may include a separate, more expensive deductible for claims of windstorm damage. You should be aware of this before the damage happens to avoid a surprise at claim time.