Is Fire a Covered Peril?

2/1/2021 (Permalink)

Fire damage in Eddington, PA

Expenses associated with fire damage cleanup and restoration damage can add up to tens of thousands of dollars. Business or building owners who have commercial property insurance should be able to file a fire insurance claim to cover most expenses associated with restoring fire damage and replacing losses. Policy details including endorsements, exclusions, or limits determine the amount of coverage.

Commercial Property Coverage

Commercial property insurance policies cover most fire restoration costs. Fire damage may not be covered if this peril is excluded or any of the following factors apply:

• Arson or intentional fire
• No property insurance coverage
• Vacant property
  
  

As long as a property is covered by an insurance policy, some funding should be available to mitigate, clean, and restore fire damage. The amount of coverage available depends on policy limits, endorsements, and exclusions.

Exclusions and Limits
Some types of coverage may be cut out of commercial property insurance policies. Exclusions are more likely for issues such as mold, which tends to originate as secondary damage due to primary water damage that was not properly restored. An insurance policy may only provide a limited amount of coverage for smoke cleanup and other supplementary cleaning and restoration procedures.

Additional Fire Coverage
A business that uses combustible or flammable substances on a regular basis along with other risk factors such as heat may want to obtain additional fire insurance. Depending on the property insurance policy, this coverage may be available as an endorsement or rider. Additional policies may be necessary for specific risks.
All of these factors determine how much coverage is available for fire damage mitigation, cleanup, and restoration. It may be necessary to tear out damaged materials and rebuild portions of a commercial building in Eddington, PA. Assessing risks, prioritizing safety, and maintaining a sufficient level of fire insurance coverage gives building and business owners more peace of mind.