Texas Commercial Property Damage Lawyer

Understanding Texas Commercial Property Insurance Coverage

Commercial property insurance is vital protection for any business with commercial property and operations. It covers damage to or destruction of a company's essential assets and property.

Generally, commercial property insurance policies offer three layers of coverage:

• Building Coverage: Building coverage covers losses that directly affect a company's buildings found on commercial property, including any permanent equipment, machinery, and fixtures. For example, not only may the four walls, ceiling, and floors of a warehouse be protected, but also the building's furnace, air conditioning unit, and other permanently installed equipment. Coverage limits and other important terms and conditions should be understood thoroughly in order to truly be aware of the extent of protection a policy offers.
• Business Property Coverage: Business property typically refers to non-permanent items and fixtures that do not fall under the coverage provided by building coverage. Typically, business property coverage covers items such as furniture, business documents, business inventory and stock, and tools and equipment not covered by building coverage.
• Personal Property Coverage: Personal property coverage provides coverage of personal property that is under the control, custody, or care of the owner of the commercial property. Although many commercial property owners have this form of coverage, there are many who do not. The type of business your company falls under tends to determine whether a business should acquire personal property coverage.

Standard commercial property policies can vary in what they consider to be covered perils. For example, some policies might automatically cover specific disasters, such as floods and earthquakes, whereas others may require the purchasing of separate policies for each type of disaster.

Also important to know is that businesses can purchase commercial property insurance as an individual line policy — also known as a monoline policy — if they choose.

Alternatively, businesses may decide to purchase commercial property insurance as part of a commercial package policy (CPP). A commercial package policy typically groups commercial property insurance with other types of insurance policies, such as commercial auto insurance and general liability insurance.

Additional Coverage Options

Other coverage options to consider include:

• Windstorm and Hail Coverage on the Gulf Coast: This may be important coverage for coastal and Harris County businesses 
• Crime Coverage: Covers crimes such as burglaries, robberies, forgeries, and employee theft
• Additional Coverages: Coverages that include business interruption coverage and extra expense coverage

You may also opt for newly acquired business coverage.

Common Causes of Commercial Property Damage

It is not uncommon for a business to experience commercial property damage from both natural causes and causes stemming from human beings. Some of the more common causes of commercial property damage include:

• Fire and explosions
• Smoke
• Wind conditions
• Storms, from tropical storms to hurricanes
• Lightning
• Flooding from storms and burst pipes
• Theft from employees and non-employees
• Vandalism
• Accidents
• Failing equipment and appliances
• Animals and insects
• Mold and mildew

In many cases, these perils are typically included in the commercial coverage that businesses purchase. However, it is possible for businesses to purchase separate, stand-alone commercial insurance policies for each of these situations as well. 

For example, a business may have a commercial property policy and decide to add a policy that specifically covers flooding or damage caused by mold and mildew.

Types of Commercial Property Damage Claim

There are several types of commercial property damage claims.

• Structural Damage: Damage to the structural elements of a building, such as load-bearing walls and beams, can make it unsafe to inhabit.

• Equipment and Machinery Damage: Damage to equipment and machines may occur due to misuse, lack of maintenance, or use beyond a machine's life expectancy.
• Inventory and Stock Loss: Commercial loss insurance can cover losses to company inventory and stock caused by theft or destruction.
• Business Interruption Loss: Business loss insurance provides funds to help weather the damage done by interruptions that lead to the loss of resources and clients.

Timeline of Commercial Property Insurance Claims

When it's time to file a claim for commercial property damage, you must typically go through the following steps. In every case, the sooner you consult an attorney, the better.

1. Loss Documentation

Once your business experiences commercial loss or damage, you must carefully and meticulously document the damage to receive a coverage payout.

2. Notify Your Insurance Company of the Damage and File a Claim

You must inform your insurance company in a timely manner of the property damage. In most cases, commercial policies stipulate claim deadlines within the language of the policy. Don't forget to include documentation of the damage when you send in your claim.

3. Damage Inspection

After your insurance company receives your claim and documentation, an assessor will likely visit your property to evaluate the damage and potentially ask you questions.

4. Insurance Company's Decision

After reviewing the assessor's report and all other relevant information, the insurance company will render a decision. Any denial should come with a clear explanation for the denial based on the language contained in the policy.

5. Answering Questions Under Oath

In some cases, the insurer may request an examination under oath. During this examination, the insurer or the insured may be required to answer questions related to the policy and the incident in question.

6. Consider Contacting a Lawyer

If you are unhappy with the decision of the insurance company, you can reach out to an attorney for help. For even more protection, consider speaking with an attorney before filing your claim.

Why Commercial Property Claims Are Denied

It is not uncommon for commercial property insurance claims to be denied, even after a business faithfully pays its premiums and acts in good faith. And although claim denials are often legitimate, receiving one does not spell the end of the story.

Some common reasons why commercial property damage claims are denied include:

• Failure to pay premiums on time or at all;
• Allegations or suspicions of fraud;
• Losses that are outside the scope of the insurance policy;
• Losses that exceed the value of the commercial property insurance policy.

Keep in mind that although these reasons are legitimate, they may not be truthful — insurance companies are notorious for arguing for denials when policies are in fact valid. 

Insurance adjusters have wide latitude when interpreting insurance policies and usually lean toward denials or, at the very least, reduction of claims. Additionally, adjusters make mistakes as well.

For these and other reasons, claimants should work with an experienced insurance claims attorney throughout the process.

How to Dispute a Commercial Property Claim

Unfortunately, you may encounter a claim denial after submitting a claim. Disputing this denial is seemingly straightforward but sometimes comes with hidden complexities.

Step 1. Understand the Denial

The first step in disputing your denial is understanding precisely why the insurance company denied your claim. Common reasons may deal with unpaid or late premiums, issues with proof of damage, or issues dealing with policy interpretation.

Step 2. Contact Your Insurance Company

Reach out to your insurance agent and firmly, but politely, inform them that you disagree with the reasons for the denial. Speak with the adjuster responsible for your claim and have them further explain their justifications.

Step 3. Request an Additional Review

Ask the adjuster if they would reevaluate or re-review your claim. Generally, adjusters will grant this request when given enough time.

Step 4. File a Lawsuit

If the adjuster refuses to reevaluate the claim or comes up with the same unsatisfactory result, your attorney can seek an appraisal from an independent insurance appraiser and file a lawsuit to compel the insurance company to pay what it owes.

How Can Our Commercial Insurance Attorney Help You?

With one of our insurance claims lawyers on your side, your business will be better able to weather any commercial losses you face. We fight hard to ensure that you get the funds you need when you need them.

Some of the many benefits you receive when you allow our team to handle your commercial insurance claim include:

• Help in understanding the options available to you;
• Total management of all claim-related paperwork and documents;
• An in-depth review of your claim and policy;
• Professionals ensuring your claim is free of errors and legally compliant;
• The hiring of experts for investigation and analysis purposes;
• Experienced negotiators who fiercely negotiate for a proper settlement award.

Remember that every step of the claims process is crucial to your settlement. This means that the earlier you consult with an attorney, the more likely you are to get the payout you deserve.