Steps to Take If Your Commercial Property Has Been Impacted by Hail

Colorado’s recent hail storms have proven that it pays to expect the unexpected and have a plan in place if your property is damaged. The severe weather that blew through the Front Range on 06/13/21 produced large hail up to 1.75 inches in diameter, along with thunderstorms and tornado warnings. Was your property hit? Interested in developing a plan to protect your investment? Here’s what you need to know if your property has been impacted by the recent weather patterns. 

Review Lease Terms

Even if your property has a triple net lease structure, you may still be responsible for structural issues like roof damage (depending upon the terms of the lease). Regardless of who is responsible for repairing hail damage, the first step is having a professional assess the issue. When circumstances such as damage from weather arise, it’s wise to have clearly defined maintenance and repair agreements outlined in the lease. These terms will help ensure that both the landlord and tenants are on the same page regarding responsibility for weather damage repairs. 

Read Your Policy and Update your Coverage if Necessary

Review your policies. Do you have an ACV or RCV property damage policy? Are you protected from all weather-related damage, or only certain perils? Does the policy cover repairs only, or will it pay to replace the entire roof? Any one of these factors can cause the delay, underpayment, or denial of your claim. 

Update your selections. How long has it been since your coverage was updated? The options that worked for you while you were establishing your business may not fully cover a growing commercial enterprise. Some common overlooked coverages include building ordinance insurance to pay the cost of bringing a damaged structure up to current building codes, inland marine insurance for goods lost in transit, and enough business interruption insurance to replace lost revenue and pay employee salaries while your business undergoes repairs. Building values continue to climb across the US and each insurance policy should be updated to reflect the current property’s value.

Inspect Your Commercial Property for Damage and Take Action

If you’re concerned that your commercial property might have been damaged by the hail storm, the first step is to contact your property manager. This is especially important if your property is located in the areas that received the most severe hail. During the recent batch of storms, pockets of hail swept through the Westminster, Broomfield, Parker, and Arvada areas. If your property is located in any of these cities, consider scheduling an inspection. The roof is a critical component of the building, and the most likely to be damaged by hail. Windows, siding, and foliage on the property may also be affected by inclement weather, such as hail storms.  Keeping your commercial property in great condition is an important factor to maintaining the highest value. If you need help understanding the map and if your property was located in one of the hard-hit hail areas, give us a call to discuss.