Commercial Roofing: Is Your Insurance Going to Let You Down?

Insurance is a great tool to protect your commercial building and other assets from uncontrollable circumstances. Whether you need fire protection, equipment protection, or building protection, insurance can preemptively address problems that may arise.

Having an insured roof can bring business owners peace of mind, especially during the storm season. However, commercial insurance policies can be confusing and become a bigger headache than what you bargained for. 

Plus, simply having an insurance policy is not enough to protect you in all circumstances. We often see insurance companies who do not cover their clients because of contractual nuisances which exclude them from full coverage. 

Here are our recommendations for how to choose adequate insurance coverage that will help you weather the storm seasons. 

Understanding Exclusions and Policy Amendments

Insurance policies often come with numerous exclusions and amendments that can be confusing and potentially detrimental if misunderstood or overlooked. Therefore, understanding these elements is crucial for commercial building owners or operators to ensure they receive adequate coverage.

Insurance Exclusion in Commercial Roofing

Exclusions are specific circumstances or situations for which an insurance policy will not provide coverage. These are often outlined in the insurance contract, and they vary depending on the policy and insurance company. In the context of commercial roofing, some common exclusions include:

Wear and Tear: Regular wear and tear or gradual deterioration of the roof over time is often not covered by insurance policies. This is because it is the policyholder’s responsibility to maintain and repair the roof to prevent such damage.

Faulty Workmanship or Design: If the roof damage is due to poor design, construction, or installation, the roof insurance policy might not cover the costs. This exclusion emphasizes the importance of hiring professional, skilled contractors for roofing installation or repairs.

Negligence: If the damage was preventable and occurred due to negligence or failure to perform necessary maintenance, the insurance company might deny coverage. Routine roof inspections and maintenance are therefore crucial. 

Acts of God: Certain natural disasters like earthquakes, floods, or hurricanes may not be covered in standard insurance policies and may require separate coverage. These clauses depend significantly on the geographical location and associated risks. 

Policy Exclusions in Commercial Roofing Insurance

Policy amendments or endorsements are modifications made to the original insurance policy, usually to include or exclude certain types of coverage. These adjustments allow the policy to be more tailored to the policyholder’s needs. Some common policy exclusions in commercial roofing insurance include: 

Windstorm or Hail Exclusion: Given the significant damage that windstorms or hail can cause, some insurers may exclude such perils. However, in high-risk areas, policyholders can choose to amend the policy to include this coverage, usually at an additional premium. 

Flood or Earthquake Exclusions: These amendments allow the inclusion of perils like flood or earthquake that are typically not covered under standard commercial roofing insurance. 

Cosmetic Damage Exclusion: This amendment covers the costs of repairing cosmetic damage to the roof, which doesn’t necessarily affect the functionality of the roof but might impact the building’s aesthetics and value.

Understanding and carefully scrutinizing the details of commercial roofing insurance policies is paramount. This not only helps in identifying potential exclusions but also in identifying opportunities for policy amendments to ensure optimal coverage. Ensuring the right commercial roofing insurance is in place ultimately safeguards a business’s financial stability and longevity, keeping it shielded from unforeseen and potentially debilitating costs. 

Does Your Policy Have Cosmetic Exclusions? 

A cosmetic exclusion is a clause in your commercial roof insurance policy that denies coverage for damage that appears, at first glance, to be aesthetic, and not structural. However, “cosmetic” damage is often where major roof problems begin.

For example, hail damage to the superficial zinc coating on your metal roof may just seem like an aesthetic annoyance at first. However, without repairs, this “cosmetic damage” can lead to a host of issues, like early rusting and a seriously reduced lifespan to your metal roof. Alternatively, a wrinkle in your TPO may seem like a purely cosmetic issue, but it can create a path for water to seep into the insulation and eventually through your interior ceiling.

Many business owners expect to see leaks inside their building within hours of a major storm, but often that’s not the case. We see many instances where it takes months or more for water from “cosmetic damage” to filter through the insulation to your interior ceiling. In the case of superficial damage to your metal roof, it may some time to experience the full impact of a hail storm.

Since it’s possible to know in the future impact of “cosmetic” damage, we recommend choosing policies that do not have cosmetic exclusions. 

Pro Tip: Develop a Relationship with a Roofer 

Much like your insurance policy can address issues before they arise, having a relationship with a commercial roofing contractor before any issues happen, can give property owners immeasurable peace of mind.

First, having someone you already know and trust on your speed dial helps you solve emergency roofing issues quickly. For example, commercial property owners who are on a Restoration Coating maintenance contract are first in line for repairs after a storm. 

Second, an ongoing maintenance contract is one of the best investments you can make in your roof. Regular maintenance ensures that your roof will be in fighting shape if a major storm happens. Our plans include cleaning gutters, checking HVAC covers, checking for penetrations (and fixing them) and much more. Catching issues early on stops them from becoming bigger and more costly issues later.

Extending the Lifespan of Your Commercial Roof: 

A commercial roof is a significant investment and an integral component of any commercial property, shielding the building from adverse weather conditions and ensuring the safety and comfort of occupants. The longevity of a commercial roof is a primary concern for many building owners. While every roof eventually ages and needs replacement, certain proactive measures can significantly extend its lifespan, ensuring an optimal return on your investment. Here’s what we recommend:

• Routine, maintenance, and inspections.
• Prompt repairs.
• Proper ventilation and insulation.
• Gutters and drain maintenance.
• Investing in quality materials and insulation.
• Roof management plan.

Get in touch with us about maintenance plans if they sound right for you and your business. Our plan is to help you get the most out of your insurance, no matter which type of policy you have.