Commercial property owners will likely experience some type of roof damage to their properties during their time in operation. Natural disasters and severe weather events, such as hailstorms, tornadoes, derechos, and powerful hurricanes, can set business owners back millions, leaving them unsure of their options for full recovery.
Despite promises by insurance companies to offer aid after an unexpected event causes significant property damage, it’s important for policyholders to remember that they are, first and foremost, for-profit businesses. Insurers are much more likely to attempt to limit the number of claims they pay out to protect their bottom line. Due to these and other significant factors, commercial property owners must understand how to best manage roof damage claims to ensure they are properly addressed and adequately compensated, allowing them to recover quickly.
Common Causes of Roof Damage
While performing routine maintenance is often the best course of action to prevent the need for costly repairs and dealing with insurers, this doesn’t always happen. Being able to catch the early warning signs of roof damage can help commercial property owners detect issues and perform repairs before they become critical, which may exclude them from coverage due to a failure to maintain the property. The common causes and indicators of commercial roof damage that property owners should be mindful of include:
Leaks and Faulty Flashing
One of the primary causes of commercial roof damage is faulty flashing, which can lead to leaks. Professional roofers use roof flashing to direct water away from critical areas of the roof, typically installing it around vents, chimneys, and skylights. Installing flashing requires accounting for the expansion and contraction of roof materials in response to the elements. When installed incorrectly or punctured, flashing can cause a roof to leak. Additionally, issues with a roof’s pitch pan can also cause leaks to emerge. The pitch pan is used to seal the areas around pipes that may go through the roof. When they are not sealed properly, they can easily cause leaks.
Strong Winds
Strong winds from major storms like derechos can also cause commercial roof damage. When roofing materials are not accurately installed and maintained, wind pressure can put additional strain on roof flashing. When this pressure combines with internal pressure, a wind uplift occurs. Over time, this ultimately damages the flashing, seams, and membranes of a commercial roof. High winds can also dislodge vent caps, allowing water to leak in.
Punctures
Although commercial roofs are designed to withstand years of weather and pressure, sometimes the roof membrane can be punctured, causing leaks and necessitating costly repairs. This is especially true concerning hailstorms that have the potential to drop sizable hailstones directly onto a roof. Typically, hailstorms occur within larger thunderstorms as dense ice pellets, called hailstones, abruptly form. These hailstones can vary in size and drop with little warning, causing property damage quickly. Texas is routinely susceptible to the effects of hailstorms and has had more hail and wind claims filed than any other state, but hailstorm impacts are spreading.
Hailstones can hit already vulnerable portions of a roof and easily puncture it. On occasion, having HVAC, plumbing, and/or electrical contractors work on a roof can also create punctures, as they may drop a heavy object or machinery onto the roof. They can also inadvertently cause damage to flashing during their time working on the roof of a commercial property.
Standing Water
Standing or ponding water can occur on a roof due to clogged drainage systems, a poorly installed roof, or a roof that has not been well maintained. Regardless, the presence of standing water can add an incredible amount of pressure to a roof’s surface.
One gallon of water weighs 8.34 pounds, meaning 100 gallons of water on a roof can add 834 pounds of dead weight on top of the roof. When water accumulates, the acceptable weight load of the roof may be exceeded, potentially leading to significant structural damage and even collapse of the roof.
New Equipment Installation
The installation of new or upgraded equipment on a commercial property’s roof can significantly increase its weight. In these cases, property owners may unknowingly exceed the roof load and put the integrity of not only the roof but the building as a whole at risk. When planning the installation or replacement of equipment on the roof, commercial property owners should calculate the roof’s dead load, live load, and transient load capacity to ensure they do not exceed the overall load capacity.
Filing a Claim for Commercial Property Roof Damage
No matter if it was a small storm system or a devastating tornado, there are specific, necessary steps that must be taken to properly file an insurance claim and get the roof repaired, including:
Assessing the Damage, Documenting It, and Filing an Insurance Claim
The first thing business owners should do once they discover roof damage at their commercial property is to review the damage thoroughly. Locating and determining the overall extent of the damage is vital to avoid drastically overvaluing or undervaluing the claim. In these scenarios, it’s best to be as accurate as possible by taking photos and videos of the damage sustained.
Once the damage has been reviewed and documented, an insurance claim should then be promptly filed. The policy owner will receive a claim number in response, as well as be assigned a representative who will be responsible for investigating the damage on behalf of the insurance company. They will review the damage, as well as the maintenance measures and other efforts undertaken by the property owner to protect the roof. Once reviewed, an adjuster will be assigned to the claim to begin the adjustment process.
Make Temporary Repairs and Hire a Contractor to Review the Property Damage
In addition to having photo and video evidence of the damage, commercial property owners should also keep all necessary receipts and documentation for any temporary or emergency repairs that may be needed during the claims process. However, it’s essential to note that these repairs should not be permanent, as this could affect the amount of coverage. Instead, property owners should take steps such as covering the damaged portions of the roof with a tarp or blocking off the inside areas of the property that may have also been damaged.
Once the adjuster has determined that the claim is valid, they will start assessing the overall extent of the roof damage. The insurance companies will then assign a roofing contractor to the claim; however, commercial property owners have the option to hire their own contractors to review the damage if they like. They will know what to look for and how to present their findings to the insurance company correctly.
Estimate Repair Costs
Once steps have been taken to ensure the property is not damaged further, estimates for permanent repairs or replacing the damaged roof must be made.
Commercial property owners should obtain multiple quotes from several reputable contractors to get a clear picture of the actual repair costs. Each quote should include a detailed breakdown of labor and material costs. This is especially valuable to consider when negotiating the estimate with the insurance company. The long-term impact of the damage must also be taken into account. Because water damage can lead to other issues, such as mold, additional remediation costs must be accounted for.
Follow Up on the Claim
In some cases, insurance companies may attempt to delay a claims investigation or even a payout on the insured’s rightfully owed compensation. Because of this, it’s essential to follow up with the insurance company to track the progress of the claim accurately.
Reach a Claims Settlement With The Insurance Company
Once the insurance company and its adjusters have completed their investigation of the damage, they will provide the insured with their findings, as well as the estimated value of the claim. If the amount is reasonable, the commercial property owner will then be approved to begin the necessary permanent repairs to the roof.
Unfortunately, however, disagreements over the outcome of a claim are all too common. Suppose the insured and the insurer cannot agree on the result of a claim. In that case, the insured can dispute the insurance company’s findings and may pursue arbitration or even litigation. In these cases, it is in the best interest of the policyholder to obtain legal counsel.
Types of Roof Damage Excluded from Coverage
While certain instances of roof damage may be covered by commercial property insurance, many others are unlikely to be covered, including:
Improper Roof Maintenance
When a commercial property owner fails to maintain their roof or conduct regular inspections, it can lead to costly repairs that could have been avoided. If the property owner notices water stains on the ceiling or other indicators a roof has been damaged, a professional roofer should be called in for an inspection. Performing routine commercial roof inspections can help owners identify problems early on and avoid having a commercial property damage insurance claim denied due to improper maintenance.
Leak and Water Damage
Leaks and other forms of water damage on a roof are only covered if the damage was caused by a covered event, like hail puncturing through the roof. Most insurance policies will generally not cover water damage to a roof if the existing policy does not already cover hail and wind damage. If a leak develops over time due to wear and tear or if the roof has not been properly maintained, an insurer will likely deny coverage as well.
Roof Age
Roof damage claims likely won’t be covered if the roof is at a certain age. In most cases, roof damage on a roof that is 20 years old or older, which accounts for the lifespan of most shingle roofs, will not be covered. A roof on a commercial property can also be deemed too old if one of the lower layers is 20 years old and a new layer was added to it rather than the whole roof being replaced.
Damage Caused by the Property Owner
If a commercial property owner damages their roof, the claim will most likely be denied. Property owner damage can occur in the form of water damage due to wear and tear or attempting to self-repair the roof, which can cause further damage.
Risky Materials
Some roofing materials that are highly expensive or can be easily damaged are most often not covered by a commercial policy. For instance, materials like wood can easily burn and may not be covered, whereas more expensive metal and slate roofs, which are costly to install, will also likely not be covered.
How to Maximize Recoverable Damages for Roof Claims
Understanding the specifics of the commercial property policy is key to ensuring business owners can maximize their recoverable damages for roof-related claims. Some specifics to keep in mind include:
Building Coverage vs. Business Personal Property Coverage
It’s essential to understand the differences between building coverage, which pertains strictly to the physical structure of the property, and business personal property coverage, which covers the contents within the building. Damage to both the structure and its contents may be a factor, making it especially important to account for both when filing a roof damage claim.
Business Interruption Coverage
In certain instances, a business may need to temporarily or permanently close for adequate repairs to be made. Business interruption coverage can compensate for any lost income and some extra expenses incurred during this period. Leveraging this coverage can significantly contribute to a policyholder’s recoverable losses.
Ordinance and Law Coverage
This coverage can be crucial in the event a commercial property needs certain upgrades to meet current building codes during the repair process. Understanding whether or not a commercial policy includes this coverage can significantly impact the outcome of a roof damage claim.
Commercial Property Insurance Claim Attorneys
Dealing with a damaged roof can be cumbersome for even the most established commercial property owner. While filing a commercial property damage claim is an essential step toward getting a damaged commercial roof repaired, if a valid claim is denied, underpaid, or delayed, you could need the help of legal counsel. At Raizner Slania, we have handled thousands of insurance claim denial cases and have a proven track record of success against every major insurer. If you have a valid roof damage claim that your insurer is attempting to delay or deny, we can help you hold them accountable.