Being a veteran in the Insurance business, I’m always nervous during the months of July thru October commonly known as Hurricane Season. I still have fresh memories of the devastation caused by Isabel in September of 2003. As business owners, it’s very important to review your Insurance coverage periodically to make sure your exposures are properly insured. Unfortunately once a Hurricane watch or warning has been posted, Insurance carriers will refuse to bind additional coverage on Property and Automobiles.

For manufactured housing dealerships, damage caused by wind & hail are covered under commercial property coverage. The loss is subject to the deductible, which varies from $250 to $1,000. Depending on the location, some Insurance carriers have implemented special deductibles for windstorm/hail that may be up to 2% of the Building and Personal Property limit. (Example – building limit - $100,000 – windstorm/hail deductible - $2,000) A potential problem area will be damage caused by water. There is coverage if the water damage is a result of another peril. (Example – rains enter roof thru hole caused by tree limb puncturing roof).

Damage caused by surface water is excluded for offices and storage buildings on lots. Flood Insurance offers coverage for this exposure but must be purchased separately and isn’t cheap. Damage to Mobile/Modular Home inventory caused by winds or hail are covered and subject to the per unit/occurrence deductibles.

Some Open Lot policies do offer flood coverage. Under a Garage policy, the comprehensive coverage does include flood. It’s best to check the wording of your policy since what’s offered by Insurance Companies does vary. I urge retailers to have Business Interruption or Loss of Income coverage included in their policies. This allows for monetary compensation from loss revenues due to temporary closure due to storm damage.

Coverage limitations are similar for Park Owners. Buildings in parks would be covered for Windstorm/Hail damage subject to the deductibles. Damage as a result of surface water is excluded and separate flood coverage would be needed. Insurance carriers limit coverage for debris and tree removal. If a tree falls on an insured building, the carrier will pay the expense for debris removal. There may be limited coverage offered for trees if covered property is not damaged. It’s best to check the wording of your policy for coverage and limitations. I also recommend loss of rent coverage for Park Owners allowing for monetary compensation in the event of a major storm damage resulting from a hurricane or tornado.

Our Insurance program for VAMMHA Park Owners offers special debris removal coverage for trees caused by wind and loss of rents coverage up to 12 consecutive months. For company owned automobiles such as Mobile Home toters, service vehicles and private passenger vehicles, Comprehensive coverage would offer protection against damage from windstorm, hail and surface water including flood.

Again, it is critical to review your Insurance coverage periodically to make sure there are no potential gaps.

Please do not hesitate to contact my office if you have any Insurance questions. I urge all VAMMHA retailers and park owners to take advantage of the Association’s Insurance program offered through EMC Insurance Company and the Yorke Agency, Inc.!