Prepare for Turbulence
and/or hail caused marring, pitting or
other superficial damage that altered
the appearance of the roof surfacing,
but such damage does not prevent
the roof from continuing to function as
a barrier to entrance of the elements
to the same extent as it did before
the cosmetic damage occurred.”
Insurance Services Office CP 10 36
Essentially, this endorsement allows
the carrier to charge a premium for
the loss exposure but greatly re-define
the definition of a loss to its favor.
Such an endorsement complicates
an owner’s option of buying a standalone wind/hail policy because its
existence would greatly complicate a
claim settlement. In many cases these
endorsements are not discussed with
the owner. The owner either does
not know of the existence of these
endorsements on their policy or may
have never had the potential coverage
impact adequately discussed with
them. Regrettably, the matter
becomes all too clear when a claim is
denied. Great care should be taken
to avoid endorsements such as this.
Based upon the feedback Willis
has received, nearly all self-storage
insurance programs are using a
percentage deductible for wind and
hail in their perceived higher hazard
areas. This deductible is calculated by
multiplying the deductible percentage
by the total insured values at the
damaged site. The percentage is
not applied to the loss amount. For
example, a facility that has a total
insured value of $5,000,000 and a 3%
wind/hail deductible has a $150,000
deductible for each wind/hail event. It
needs to be noted that the definition
of “wind” is not restricted to tornados.
It is applied to any wind event.
It is becoming a challenge to find
solutions to these three problems.
In our practice, we have been able
to place insurance with certain
insurance companies that still use
a flat deductible for wind and hail
in these affected areas. However,
these carriers have a higher
minimum premium and may not be
an affordable option for the smallest
operators as they have fewer assets
over which to spread the insurance
cost. Typically the minimum policy