Millions of business owners and renters maintain liability insurance each year to protect themselves against damages resulting from an unforeseen event, like a fire or flood. But most business owners and renters are unsure if their liability insurance covers them in the event of fire damage. Because liability insurance can vary based on how the policy is written, it’s important to understand what is and isn’t covered before something happens.
For example, your coverage for fire damage should be clearly explained in your policy. However, don’t assume fire coverage is automatic. Here are some things you should consider from the experts at Rainbow Restoration.
Determining Liability for Fire Damage
Insurance policies can be written to cover just about any disaster, with fire and smoke damage being two of the most common. So, chances are good you have coverage. However, now is the time to confirm it!
Renters are normally affected by two different types of insurance. First, the renter’s own policy covering his personal property. Second, the Landlord’s policy covering the structure. Make sure you are familiar with both.
Coverage Limitations
All insurance policies contain limitations and exclusions. Always make sure you understand what they are. One of the most overlooked areas by business owners is having a continuation of income if the business is closed as the result of a disaster (Business Interruption Coverage). Having this coverage will come in handy in the case of a fire.
Related Topic: Fire Damage: What to Do After the Dust Settles
Fire can cause extensive damage to any business. Even a relatively small fire can cause smoke damage, closing a business for an extended period of time. It’s important to know your policy provides enough coverage to replace the critical components of your business. If you’re not sure, an insurance professional can review your situation and provide you with peace of mind.
Related Topic: Understanding the Impact of Smoke Damage
Additional Coverage
Fire is a fairly standard coverage in most commercial insurance policies. Natural disasters, or Acts of God (any event that occurs outside human control), can be a little trickier. Making sure you have additional coverage for such disasters can be the difference between maintaining your business and losing it. Check into your options and cost for additional coverage, especially if your business operates in areas where such natural disasters can occur.
Improve Fire Safety at Your Business
Before making a final decision the padding and sub-floor—what’s under the carpet—will have to be evaluated. Any water damage must be repaired, not just covered up. If the damage is not properly addressed mold could develop and create a serious health threat. Even if the sub-floor appears intact, it’s always a good idea to have a professional check it for structural damage to make sure. If no permanent damage is detected, and the carpet and padding are dried completely, leaving the carpet in place is an option.
What’s Covered by Insurance
Maintaining the appropriate insurance coverage certainly mitigates the risk of disaster. Of course, the best insurance policy is the one you never need to use. Fire safety knowledge for all employees is always a worthwhile endeavor. It is one piece of a complete fire-containment program, which typically includes fire extinguishers, smoke detectors, alarm systems, and sprinklers. If you’d like more information on creating a complete Disaster Preparedness Plan, contact the professionals at Rainbow Restoration today.
Smoke and Fire Damage Restoration Professionals
When water damage occurs, it can wreak havoc on your daily life, but it doesn’t have to be permanent. Call the professionals at Rainbow Restoration or schedule an appointment online for commercial or residential smoke and fire damage restoration services. Rainbow Restoration is here to restore your home or business as quickly as possible.
