Paying for Restoration: Insurance Claim or Out of Pocket?

You buy commercial property or homeowner’s insurance because you want financial assistance in case of a disaster. When something goes wrong, you want to know what your policy will cover the losses. Insurance coverage for restoration is limited and often dependent on the cause of damage, so it pays to do your research. Here, Paul Davis Restoration of North Dallas offers a brief introduction to paying for restoration with insurance and out-of-pocket.

Paying for Emergency Restorations

Insurance policies provide a safety net against disaster. When something goes wrong at your home or business property, your policy will cover the cost of emergency restorations. These include any repairs necessary to continue living or working on the property. They are designed to return your property to its pre-loss condition after an accidental and unavoidable disaster, such as:

• Fire and smoke
• Lightning strikes
• Windstorms
• Hail
• Snow and ice
• Frozen pipes
• Power surges
• Falling objects
• Theft and vandalism
• Vehicles

Most policies exclude damages that were not accidental and unavoidable. As an example, mold and mildew remediation may be covered if the mold occurred as a result of storm damage or a pipe break. If the mold appeared due to property owner neglect, however, you would have to repair the damage with your own funds. The same is true if you purchase an older building with an existing mold problem. Once again, you’d need to fix the issue with out-of-pocket payments.

Exceptions to Homeowner’s Insurance

There are some exceptions to emergency insurance coverage. Certain types of disasters are too common and destructive for providers to cover as part of their standard package. If your home or commercial building is damaged by one of these disasters, your basic insurance policy will not pay for restoration. You’ll have to pay for any necessary repairs out of your own pocket. Common exceptions include:

• Flooding
• Earthquakes
• Landslides
• Wildfires
• Hurricanes

If you live or work in a region prone to these disasters, you should consider purchasing additional coverage. Many private insurance companies offer endorsements: special add-ons that extend your policy’s coverage for a fee. Others may require you to purchase a second policy to protect your property. With the right endorsement or policy, you can ensure that restorations will be paid for in case of any emergency.

Paying for Voluntary Restorations

Though commercial and homeowner’s insurance will cover necessary restorations after an emergency, they won’t pay for anything purely voluntary. In short, voluntary restorations refer to any repairs that are not necessary to return your property to a livable or workable condition. They are optional and nonessential. Types of voluntary restoration may include:

• Cosmetic restorations that do not affect the building’s usability
• Restorations to a building purchased with pre-existing damage
• Improvements beyond your building’s pre-loss condition
• Expansions or additions that increase your building’s footage

These kinds of restoration will need to be paid for out-of-pocket. Despite the expense, however, they are often worth the investment. Out-of-pocket restorations will make your property more comfortable. They can also improve your property’s value, making it more desirable to potential renters and buyers.

Hire Emergency Restoration Service Today

Paul Davis Restoration of North Dallas helps private and commercial property owners recover after disaster. We provide emergency restoration services to return your property to its pre-loss condition. If you plan to pay with commercial property or homeowner’s insurance, our experienced insurance professionals will work with your company to secure the best possible payout. Contact us today to learn more about our services or to request a quote on your restoration project.