Understanding Wind and Hail Damage in Commercial Real Estate

Because wind and hail damage can have significant impacts on commercial buildings, you need insurance professionals who understand commercial real estate to help advise you every step of the way. Let’s explore the effects of wind and hail on commercial properties and discover how AssuredPartners can help you handle the unexpected.

The Growing Threat of Wind and Hail

Wind and hail damage is becoming increasingly common due to changing weather patterns. According to the Insurance Information Institute, the industry sustained over $14.2 billion in hail-related losses in 2020, up from $13 billion in 2019. This increase is largely attributed to climate change, which is expected to result in more frequent and severe hail events.

Impact on Commercial Properties

Commercial buildings are particularly vulnerable to wind and hail damage, especially those with older or poorly maintained roofs. A study by CAPE Analytics found that roofs aged 6 to 10 years experienced the highest hail loss ratios, highlighting the importance of regular roof maintenance and inspections to mitigate potential damage.

Insurance Claims and Costs

Wind and hail damages account for about 15% of small business insurance claims, with an average claim cost of $26,000. This significant financial impact underscores the need for adequate insurance coverage and proactive risk management strategies.

Types of Deductibles

A wind or hail deductible is a separate, higher deductible provision that applies to loss caused by wind or hail. Understanding the types of deductibles applicable to wind and hail damage is crucial for commercial property owners. Common deductible types include:

• Per Occurrence Deductible: A single deductible for all buildings affected by an event.
• Per Location Deductible: A deductible applied to each affected location based on its total insured value.
• Percentage Deductible: A deductible calculated as a percentage of the property’s value or the loss amount.

Mitigation Strategies

To protect commercial properties from wind and hail damage, consider the following strategies:

• Ensure the roof is inspected and maintained regularly to identify and address vulnerabilities.
• Use durable, impact-resistant materials for roofing to withstand severe weather conditions.
• Review and update insurance policies to ensure they provide sufficient coverage for wind and hail damage.

Business Continuity and Protection Tips

• Outline procedures for maintaining operations during and after a disaster. This includes identifying critical functions, backup locations, and communication plans.
• Train employees on emergency procedures and ensure they know their roles in the event of a disaster.
• Regularly back up important business data and store it in a secure, off-site location.
• Protect physical assets by securing equipment and important documents in safe locations.
• Ensure your insurance policies cover all potential risks, including wind and hail damage. Consider business interruption insurance to cover lost income during recovery periods.
  
  

Conclusion

Wind and hail damage pose a significant risk to commercial real estate, but with proper maintenance, insurance, and risk management strategies, property owners can mitigate these risks. Our team is informed about the latest industry trends and statistics and can help you make proactive decisions to protect your investments.

Our Commitment

At AssuredPartners, we pride ourselves on our unwavering commitment to handling any situation that comes our way. Time and again, our dedicated teams have demonstrated exceptional coordination, dedication, and teamwork, successfully navigating numerous catastrophic events. For example, our teams were deployed to tackle significant challenges such as the Spencer, Iowa, flooding, Hurricane Byrel in the Central States, and Hurricanes Helene and Milton in the Southeast.

Thanks to our extensive network of agencies and regional teams, we managed claims for thousands of clients, ensuring they received the support they needed during these difficult times. From IT and HR to operations, everyone played a crucial role in powering through these challenges. This was truly a demonstration of power through partnership.

As we continue to strengthen our Crisis Action Team, we are committed to being prepared for any future challenges, ensuring swift and effective responses to protect your commercial properties.

For more information or to discuss your insurance needs, don’t hesitate to reach out to our team. Together, we can build a resilient future for your business.