Peak Hurricane Season: Do Coastal Texas Businesses Have the Right Insurance?

Portland, TX & Corpus Christi, TX businesses may face prolonged disruptions after a major storm. While commercial property policies can cover wind damage, flood losses are often excluded, leading to high out-of-pocket costs. Randy Russell Insurance offers business insurance options to help fill these gaps.

Understanding the Scope of Coastal Risks

Standard commercial property policies often exclude severe storm perils in coastal areas. In Texas Tier 1 coastal counties, businesses typically need separate endorsements or standalone policies to cover wind and hail damage.

When evaluating coastal property coverage, keep the following factors in mind:

• Policy exclusions: Standard commercial policies frequently exclude damage caused by hurricanes, named storms, and wind-driven hail.
• Tier 1 requirements: Properties in designated coastal counties often require coverage through specialty private markets or the Texas Windstorm Insurance Association (TWIA).
• Binding moratoriums: Coverage must be secured before a storm approaches, as carriers may suspend policy binding once a tropical system enters designated tracking areas.

The Importance of Flood and Business Interruption Coverage

Standard commercial property policies often exclude flood damage, leaving assets and revenue exposed during coastal storms. Key coverages can include:

• Flood insurance can cover direct physical damage from rising water and storm surge.
• Business interruption insurance can help replace lost revenue and pay ongoing expenses during closures.
• Extra expense coverage can fund temporary workspace and equipment rentals to resume operations faster.
• Equipment breakdown insurance can cover post-storm power surges and mechanical failures.

Standard NFIP policies generally exclude lost income, and standard property policies may not cover shutdowns caused by flooding. Businesses can close this gap with private flood insurance that includes business interruption.

We Can Help

Contact Randy Russell Insurance today to get a free custom quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.