Hail damage can cause significant stress on business owners – especially when the roof is compromised. Although there are ways to mitigate roof damage before a hailstorm, destruction may still occur, and the property owner must file a commercial property insurance claim. With this in mind, it’s important to note that specific insurance claims, including those for hail damage, have time limits for when they can be filed. Understanding these constraints and the laws surrounding them can help ensure these commercial insurance claims are processed promptly and effectively, allowing operations to continue smoothly.
Commercial Hail Damage in Texas
Dealing with roof hail damage is unfortunate for many commercial property and business owners in Texas. Because of the state’s proximity to the Gulf Coast, warm, moist air can more easily combine with cooler air masses from the north. This combination creates ideal conditions for hail to form, leaving many communities across Texas vulnerable to hail damage.
In 2024, Texas saw the highest number of hail-related weather events, according to the National Oceanic and Atmospheric Administration (NOAA). 2023 was also a significant year for the state, with one storm that impacted Travis and Williamson County, resulting in up to $600 million in hail-related damage. That same year, another hail event in the Dallas-Fort Worth area caused an estimated $7 to $10 billion in insured damages. Overall, Texas consistently ranks as the top state in the nation regarding the number and scale of hail-related weather events.
The impact of hail can cause devastating damage to roofs in particular. For instance, a roof that has sustained prior hail damage will likely see punctures through the roof and roof membrane during future hailstorms. Additionally, having roof punctures present can cause further damage to the interior of a commercial structure, as water can more easily enter the building. Hail damage to a roof can be incredibly costly, and in some cases, the damaged roof will need to be replaced entirely.
How to Spot Hail Damage
Hail damage can vary significantly based on the size of the hailstones, the windspeed during the storm, and the type of roofing material on the property. Although metal roofs are generally more durable than others, they are not immune to damage. Some of the best ways to detect the presence of hail damage at a commercial property include:
- Visual Inspection: Look for minor dents or dings on metal panels. Running a hand over the roof’s surface can help to detect any indentions that may not be immediately visible. On roofs with paint, chipping and cracked paint can indicate that hail was present. Loose or missing fasteners and split seams in the roof are other key indicators that hail has impacted the property.
- Membrane Inspection: On flat roofs, checking for punctures or tears in the roofing membrane can indicate hail damage is present. These indentations can often lead to leaks in the interior if not repaired promptly.
- Surface Texture Examination: Examining the roof’s surface for areas where pebbles or granules have been disturbed to reveal the roof’s underlying substrate can be a sign of damage. Additionally, bald spots on the roofing material can indicate a compromised roof.
- Check for Water Accumulation and Drainage Issues: After a hailstorm, areas on the roof where water has pooled can indicate the presence of depressions caused by hail impacts. Blocked drains and gutters from storm debris can also indicate further damage.
Insurance Claim Deadlines for Texas Hailstorms
Texas has specific deadlines and statutes of limitation that must be considered when filing a claim for hail damage. Policyholders who do not file a hail-related claim within the applicable limits may be subject to legal penalties. Although the timeframe for filing a hail damage claim ultimately depends on the stipulations listed within a commercial insurance policy, the Texas statute of limitations for filing a hailstorm claim is usually two years from the date of the covered event. Despite this, it is crucial that policyholders file their claim for hail damage as soon as the damage has been assessed. The quicker a claim is filed (while still being appropriately thorough), the more likely it is to be approved by the insurance provider.
Key Steps to Follow When Filing a Roof Damage Claim for Your Commercial Property
It’s key for commercial property owners to be proactive and report hail damage to their insurance providers promptly and within the required timeframe. Failing to do so can result in a complete claim denial, leaving businesses responsible for covering the costly repairs out of pocket. Understanding the steps required to report and document hail damage from the outset can ensure a smoother insurance claim process. These include:
Review Commercial Wind and Hail Policies
Commercial property owners must thoroughly understand their policies and what is or is not covered before a devastating hail event occurs. In some cases, policies can be broken down into Replacement Cost Value (RCV) and Actual Cost Value (ACV) coverage. RCV provides that a policyholder will receive the amount necessary to replace covered damage at the present cost for items of like kind or quality. On the other hand, ACV is the amount that a lost item was worth at the time of purchase or the amount equal to the replacement cost minus depreciation of the damaged property at the time of loss.
In addition, wind and hail policies may have to be purchased separately from standard commercial property damage policies, which do not always cover hail-related damage. It is common for business owners to incorrectly assume they have hail damage coverage under a commercial policy when they do not. A wind and hail insurance policy can be obtained through private insurers or the Texas Windstorm Insurance Association (TWIA). Having a wind and hail policy can help cover the cost of direct hail damage to a business. However, policyholders should note that even with a wind and hail policy in place, they can still be taken advantage of by their insurance company.
Initiating the Claims Process
As soon as hail damage is discovered, business owners should notify their insurers and provide them with the necessary information. This can include the date of the storm and a description of the exterior and interior damage.
Once the insurance provider is notified, the damage must be documented through photographs and videos from multiple angles. This damage should also be listed and include notes of any damaged items inside the property to help support the claim.
Work With the Insurance Company’s Adjuster
Once the claims process has begun, the insurance company will send a claims adjuster to review the damage in person. During this time, the documentation and records collected supporting the claim should be shared and discussed with the adjuster. You should be sure to answer any questions they have and include key details.
It’s important to remember that these adjusters represent the insurance company and will ultimately work in their best interests over those of the policyholder. Hiring a separate, private adjuster to inspect the property can help ensure nothing is missed and that business owners have their own party hired to evaluate the damage best in the event the claim is disputed or wrongly denied due to the insurance company or adjuster’s findings.
Consult an Attorney
If the insurance company denies, delays, or underpays a valid claim for commercial roof hail damage, it may be in the business owner’s best interests to consult with an attorney. A commercial property insurance claim attorney can help navigate the legal complexities involved and advocate for the policyholder’s rights to ensure a fair resolution.
Commercial Property Insurance Claim Attorneys
Dealing with roof hail damage can be incredibly frustrating for business owners who may need to suspend or shut down operations to make necessary repairs. This can create even more frustration if a valid claim is denied by an insurance provider looking out for their bottom line to the policyholder’s detriment.
At Raizner Slania, our attorneys are uniquely experienced in handling claims against some of the largest insurance providers in the world. We are passionate about providing the best possible outcome for our clients in the shortest amount of time. If your commercial property has suffered hail damage and you need assistance with a claim, we can help you find an optimal solution.
