Gain a Better Understanding of Commercial Storm Coverage

10/24/2019 (Permalink)

Hurricanes and major wind events cause major loss of life and extensive damages nearly every year

The terminology of storm insurance coverage is one key to better understanding your policy. It follows the pattern of other insurances, but at times it has its own vocabulary. For example, storm coverage makes use of deductibles, but recently the industry has moved toward percentage deductibles instead of fixed deductibles. This means the deductible is based upon a percentage of the insured value of the property instead of a fixed dollar amount which is more common in auto policies. This limits an insurer's exposure to catastrophic losses should a big event like Hurricane Katrina hit an area.

A Definition of Key Terms

Knowing the language of insurance coverage is one path to understanding. Here are some terms that may be in your storm insurance policy:

Mandatory Deductibles are determined by insurance rules, regulators or state law, or by the insurer
A Market Assistance Plan is a referral system that connects companies looking for insurance in touch with insurance companies looking for more business
Optional Deductibles allow policy holders in less vulnerable areas to pay higher deductibles in return for lower premiums
A Trigger is an event where a hurricane deductible is applied

Coverage for a major storm in Shoreline, WA, is subject to the language of your policy. A better understanding of your insurance coverage allows you to make changes and adjustments that protect your company's assets while keeping premiums affordable.

A Plan for Protection

Hurricanes and major wind events cause major loss of life and extensive damages nearly every year. A business needs to protect itself with a comprehensive disaster plan. Mitigating losses after a storm hits should be part of the plan. Working with a storm damage remediation company that is Faster to Any Size Disaster in Shoreline, WA, is an important step. Fast cleanup and water removal will reduce losses. Knowledge of your storm insurance will result in a better policy.