Steven was sitting at his desk in his office of an Austin private school. He was preparing for a budget meeting for the upcoming school year. As the headmaster, he was reviewing all of the concerns that his board of directors had brought up before the meeting.
Everything seemed to be in order until he got the property insurance policy details. Living in Texas, Steven knows it's not a matter of if a hailstorm will hit, but when. The thought of golf-ball sized hail pelting the school's roof, shattering windows, and causing major headaches and expenses makes him shudder. But when he saw the school's deductible for hail damage insurance claims, his shudder turned to fright. He knew he needed a different plan.
Just like Steven in Austin, every private school across the Lone Star State needs to be prepared for the inevitable Texas weather. But finding comprehensive coverage for hail and other natural disasters has become harder and harder for Texas private schools like Steven's.
Did you realize that Texas has twice as many large event hail storms than any other state in the US? Texas sits smack-dab in the middle of what's known as "Hail Alley." This isn't some funny nickname; it's a real zone where the conditions are just right for severe thunderstorms that drop a ton of hail. The conditions are so crazy, that we actually have two hail seasons each year.
Sometimes, the hail can be as big as softballs, causing serious damage in minutes. Having spent his entire life in Texas, Steven was well aware of the damage that can happen to homes, cars, and especially schools like the one he is in charge of.
His friend from college works at a school in North Texas that was hammered by massive hail last year. The weather related damage was so bad they had to shut down for days. The repairs for property and water damage cost a fortune.
That kind of damage can happen anywhere in Texas, and private schools, with their often tight budgets and large roof area, can really take a hit. Steven knew that ignoring this risk isn't an option.
In Steven's review, he knew that his school has insurance. Great! But what exactly would it cover when it comes to hail? This question is what caused his uneasiness during his review.
He attempted to put on his detective hat and really dig into the details of your policy. Before he got to the deductible, he realized that there was potentially another problem.
There are a couple of main ways insurance companies handle the hail damage insurance claim process. One way is called "Actual Cash Value" or ACV. This means they look at how old something is and how much it has worn down, and they pay you what it's worth now. So, if your school's roof is 15 years old, you might not get enough money to replace it with a brand new one.
The alternative is better. It is called "Replacement Cost Value" or RCV. This means the insurance company will pay the full cost to replace the damaged roof after your school pays the deductible. However, sometimes they'll only give you part of the money upfront and make you wait until the repairs are finished to get the rest.
You absolutely need to know which type of property coverage your school has for hail damage. Don't just assume it's replacement cost! It makes a huge difference.
Steven realized that having actual cash value along with a 5% wind and hail deductible left his school exposed. The roof was almost ten years old and the school was going to pay up to $50,000 for the percentage deductible based amount that was tied to his school building valued at $1,000,000. This just wasn't acceptable.
Steven knew he was going to have to call his insurance agent and ask them to explain why they had these provisions in plain language. He was afraid of a huge shock if the next storm caused physical damage to their buildings.
It's not a secret to most who have been here for a while, but where your private school is located within Texas can affect how much you pay for your hail insurance policy. If your school is in the Panhandle or North Texas that gets hammered by hailstorms year after year, the insurance companies see you as a higher risk than Steven's school in Austin. That higher risk translates to a higher cost of business insurance.
What Steven didn't understand is that insurance companies keep track of your past claims. If your school has filed several insurance claims in the past, even if they weren't for hail damage, it can make your premiums go up. They see a history of claims as a sign that you might file more in the future, especially if you are filing for small items.
On the flip side, if your school has taken steps to protect itself, like installing a super-strong, hail-resistant roof, you might actually see a bit of a break on your insurance costs. It pays to be proactive! When Steven's insurance agent explained this, he began to rethink his strategy for purchasing additional coverage for small things.
Steven was definitely smart to be thinking about hail damage and how his insurance policy responds to it. Every private school in Texas faces this same threat. You need to understand that hail can cause serious damage, and not all insurance companies offer policies with the same level of protection.
Now, if you're feeling overwhelmed by all this insurance talk like Steven felt, there's good news. There's a program specifically designed to help private schools and early childhood education centers in Texas find the right insurance coverage. It's called True Texas Education Insurance.
This program was created by the expert advisors at Insurance For Texans. They understand the unique needs of Texas schools like yours. They ask you questions and help your school find customized solutions to protect buildings and budgets from the next Texas-sized hailstorm.
Ready to take the worry out of hail season? Click the button below to explore how True Texas Education Insurance can provide the peace of mind your private school deserves.