If Insurance Claims for Hail Damage Are Common, Why Do Policyholders Have So Many Problems?
Almost every kind of property is at risk for damage in a hail storm. Even though insurance claims for hail losses are extremely common, the process of resolving a claim isn’t always easy or fast. There are numerous kinds of problems that can come up when you submit a claim for losses, but these challenges often arise because:
Different kinds of damage in a storm make claims confusing. Hail damage in a severe storm may be treated differently under your insurance policy than, for example, the water damage caused by a roof puncture in the same storm. This is why it becomes so important to carefully estimate and assess the losses you sustain, determine the cause of the damage, understand your coverage, and make sure claims are submitted correctly.
It’s a common and costly weather event, so insurance companies often try to pay as little as possible for losses. Some have called it the “war on hail,” but it’s not uncommon for insurance companies to actively attempt to reduce the amount they must pay to policyholders affected by hail storms, especially when large regions are affected. To truly ensure their hail claims are fully paid, policyholders need to have a strong understanding of both their policies and their rights.
There are many steps involved in maximizing a hail damage claim. From making sure you have documented all the damage suffered to hiring trustworthy contractors to deciding whether or not to accept an offer from the insurance company, there are a lot of steps—and a lot of research—involved in properly documenting a hail claim.
Increasingly, insurance companies have taken the position that the reported rise in hail insurance claims over the last several years was due to unscrupulous contractors, public adjusters and policyholder attorneys. If you are an insured person with a commercial hail insurance claim, your insurance company may choose to identify hail damage to your roof or property as prior unreported or undiscovered roof damage. In this case, your policy does not cover the damage because the insurance company says it did not occur during the policy period. Unfortunately, these insurance companies often ignore or disregard property inspections performed as part of the underwriting process in which no such damage was noted to the roof at the time the policy was initially procured.
Insurers have been known to take aggressive positions against the insured’s interests concerning the carrier’s liability for such hail claims. The insured must be prepared to fairly investigate and fight against the insurance company for what they deserve under their insurance policy.
What Is Cosmetic Damage in a Property Insurance Claim?
Cosmetic damage exclusions largely apply to the exterior elements of a business, such as the roof, siding, windows, or doors. It’s generally defined as damage that affects the appearance of a property but does not interfere with the function of the damaged area. For example, when hail dents a metal roof, the carrier may contend the damage is to be considered cosmetic if there are no punctures, leaks, or other damages that compromise the function of the roof.
When Is Cosmetic Damage Covered by Property Insurance Policies?
Individual policies vary quite a bit in how they cover damage to the appearance of a property, and the coverage can surprisingly difficult to understand. For example, some policies exclude cosmetic damage, but will technically cover direct physical loss from hail, even if it did not involve structural damage. What this means is, in some policies, a dented roof may be excluded, but a roof dented by hail would be covered.
In practice, what the insurance company considers cosmetic damage is rarely straightforward. In the example of the dented metal roof, what happens if the dents have subtly affected drainage, runoff, or seals? What happens when repairs for cosmetic damage to a home or business cost tens of thousands of dollars? It’s truly confusing, and this is why it’s important to call your insurance company and ask specific questions about your coverage. If you don’t have a good understanding of the insurance industry and its lingo, the guidelines of the policy may seem murky when you really need to know if your storm claim will be accepted.
Bad Faith Tactics by Commercial Insurance Carriers
Insurance companies will often try to pay out as little as possible to maximize their profits. This often means that commercial insurance policyholders receive less compensation than they are rightfully owed. Some of these dishonest and unfair “bad faith” tactics include:
Significantly underestimating the extent of losses
Misrepresenting the cause of the loss
Delaying or denying legitimate claims, hoping policyholders will eventually give up their fight.
Insurance policyholders do have legal recourse, however. Commercial property owners can protect their business investments by enlisting the help of a proven commercial property hail damage lawyer to help them in insurance recovery.
Commercial insurance disputes are often focused on one or more of the following factors:
Whether repair or replacement of the commercial property is appropriate
The cause of the loss and whether it is covered under the insurance policy
The cost of commercial property repairs
The loss of investment value or business income caused by the damage
The estimated value of the destroyed business equipment or other insured items
The replacement cost of the commercial property if the building was damaged beyond repair
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 important step toward getting a damaged commercial roof repaired, if a valid hail claim is denied, underpaid, or delayed, you could need legal counsel. At Lundquist Law Firm, 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 hail claim that your insurer is attempting to delay or deny or have questions about the process, the Lundquist Law Firm can help you hold the carrier accountable.