When purchasing business property insurance to cover a commercial property, business owners need to consider all the “what ifs” and not just the more likely scenarios.
One of those growing “what if” situations for Texas business owners is the potential for frozen water pipes and the damage that can be caused as a result.
Experienced Texas insurance agencies know that as the state has experienced colder winters over the past few years, customizing commercial insurance policies to cover this type of damage and understanding how that coverage is applied are essential.
Freezing Weather In Texas Can Mean Pipe Damage
With wintertime lows below zero becoming more common in Texas, so are incidences of frozen pipes and the damage they can cause.
Insurance agencies are receiving more claims each winter for water damage sustained due to pipes cracking or bursting as they freeze.
Depending on the location and size of these pipes, the degree of water damage can be extensive, even to the point of causing companies to close their business locations while cleanup and damage repair are handled.
A well-built business property insurance policy is important in these cases, as damages often include everything from physical property damage to losses due to the interruption of business operations.
Does Standard Business Property Insurance Cover Pipe Damage?
The standard commercial property policies sold by insurance agencies usually cover losses resulting from pipe damage due to defects, vandalism, natural disasters, and accidental breakage.
This coverage usually pays for repairs for any associated damage costs such as loss of income, etc.
While this does generally cover damage due to the pipes freezing, there are conditions associated with these claims that business owners are often unaware of until it is too late.
Most business property insurance policies specify that losses relating to pipe damage due to freezing are only claimable if the necessary measures to prevent frozen pipes, such as applying insulation and keeping buildings heated at all times, have been taken.
If so, should the pipes freeze for some other reason, all associated damages would be covered.
Unfortunately, business owners often find themselves without coverage for these often major losses when those precautions are overlooked.
See How To Protect Loss Due To Pipe Damage
In this short video segment, Brad Hurt, partner at Service Insurance Group, discusses the issue of frozen pipes and how the right business property insurance can protect businesses from the damage that can be caused in the event of a burst pipe.
Commercial Property Insurance Agencies Can Help
Commercial property insurance policies are of little value if they do not provide the protection a business owner needs.
While one part of receiving that value comes from choosing the right coverage for “what if” situations, insurance agencies also stress the importance of understanding policy limitations and knowing what policyholders must do to have such coverage, if possible.
An experienced business property insurance agent will help customers make the right policy choices while also explaining any policy limitations to protect their coverage and their property.
