Melissa owns a daycare in Fort Worth, and every spring she watches the weather closely just like every other Texan. You don't have to be a native to know that large chunks of ice have a tendency to fall from the sky.
A hailstorm tore through her neighborhood last year, shattering car windows and leaving roofs in need of repairs. Fortunately, her business was spared from the claims process as she did not have any damage from hail due to that storm.
What she did see were local businesses scrambling to fix the damage. Melissa worried about what would happen if a big storm like that hit her daycare nestled in the middle of North Texas. The thought of losing her playground or having major roof damage was keeping her up at night.
Melissa decided it was time to check her commercial insurance policy before storm season arrived so that she could be prepared. She wanted to make sure she wasn’t caught off guard if hail came crashing down creating financial damage for her business.
Many Texas daycare business owners can find themselves wondering what their insurance actually covers if they have a hail damage claim. They know that they are paying big insurance premiums, but it often feels like they don't have the insurance coverages they need when they make the claim.
When Melissa reached out to our experienced daycare insurance agents to review our policy, we immediately had three major items that she needed to review about her coverage for damage from hail storms. Here are three things every daycare owner should know about their insurance. Including Melissa.
Melissa’s daycare has a playground full of slides, swings, and climbing structures. The kids love being able to work off the energy and navigate the space. Because of this love, Melissa wanted to confirm that her insurance company would repair or replace it if hail destroyed it. She assumed it was covered by her building coverage, but when she was sick thinking that might not be the case.
Not all insurance policies automatically cover outdoor equipment. Some policies protect the building but leave out things like playgrounds, fences, and shade canopies. If a storm damages them, replacing or repairing them could come straight out of pocket.
Here’s what daycare owners should do before hail season:
Melissa was surprised to learn that her policy didn’t fully cover her playground due to a limit of coverage. Fortunately, she was able to add this additional insurance coverage before the storm season hit.
Melissa also realized she didn’t know how much she’d have to pay out of pocket if she had to file a hail damage claim. She assumed she had one deductible for everything, but you know what happens when we assume something.
Almost all Texas daycare insurance policies have separate deductibles for wind/hail and all other perils it covers. That means if hail damages the roof, she would pay a different deductible than if the same roof was damaged by something else, like fire or vandalism. In many cases, wind and hail deductibles are higher than others. That means that owners like Melissa could be out thousands of dollars unexpectedly.
Before hail season arrives, daycare owners should:
Melissa was glad she looked into this ahead of time. She bought the deductible buy down policy so that she was not stuck with the additional costs of replacing the entire roof in a total loss.
After learning more about her coverage, Melissa started thinking about what would happen if she ever had to file a claim. She knew that insurance helps cover big repair costs, but she didn’t realize that filing too many claims could affect her daycare’s ability to get coverage in the future.
Insurance companies look at past claims history when deciding the terms of a policy. If a daycare files too many hail claims, an insurance carrier may decide not to renew coverage. If that happens, the daycare might have to find a new provider, and not all companies will offer terms if they see a history of weather-related claims.
To avoid problems with future coverage, daycare owners should:
Melissa didn’t want to risk losing coverage in the future, so she made a plan. She would only file claims for major damage and handle smaller fixes on her own when possible.
Melissa didn’t stop at checking her policy because she wanted to make sure her daycare had the right coverage for hail season and beyond. Leveraging True Texas Education Insurance from Insurance For Texans allowed her to review her policy and make sure her business was fully protected.
The experienced agent started by asking a lot of questions about her business. They then helped her find comprehensive coverage options that fit her needs. That included covering her outdoor equipment, obtaining the right deductibles for her, and making sure she had long-term options if she ever needed to switch daycare insurance carriers.
Now, when storm clouds roll in, Melissa doesn’t have to stress. She has peace of mind knowing her daycare is ready for whatever storm season brings.
Hailstorms usually strike fast and leave a path of destruction across Texas. Don't let the damages to buildings leave your daycare with larger than normal costs to repair. Checking your insurance policy now can save you from unexpected costs later.
Click the button below to find out how True Texas Education Insurance can help protect your daycare before the next storm arrives!