When a major storm hits Houston, commercial property owners face more than just physical damage, they face operational shutdowns, financial losses, and insurance companies looking for ways to underpay.
At Daly & Black, P.C., we don’t just represent clients, we go to war for them. Our team of experienced storm damage lawyers always fights with full compensation in mind so that your business can recover and rebuild without compromise.
We know how insurers operate, and we know how to beat them. If your business is grappling with storm damage, don’t settle for delay tactics and denials. Let a Houston commercial storm damage claim lawyer from Daly & Black, P.C. take the fight to them.
Get in touch with us today and secure a free consultation.
Why Commercial Storm Damage Claims Are Uniquely Challenging
Commercial claims aren’t just bigger, they’re more complex. Unlike residential policies, commercial property insurance often involves layered coverages, higher deductibles, co-insurance clauses, and multi-party interests (e.g., tenants, landlords, lenders). Each layer adds potential for delay, dispute, or outright denial.
Documentation requirements are more burdensome, and loss valuation can spiral into disagreement, especially with claims involving business interruption, equipment loss, or restoration delays. Without experienced legal help, policyholders are left navigating an intentionally confusing process stacked in the insurer’s favor.
The Rising Cost and Risk: Insurance Trends Affecting Texas Businesses
Texas continues to experience the highest volume of storm-related property claims in the country. Hail and wind events disproportionately affect the Houston area, leading to increasingly aggressive tactics by insurers and rising costs for policyholders:
Texas Leads in Hail Claims
Texas consistently ranks at the top of the nation for hail-related insurance claims. Between 2017 and 2019, the state accounted for 23% of all hail damage claims filed in the U.S., underscoring the regularity and severity of storm events in the region. For Houston business owners, this means a higher likelihood of storm damage—and a correspondingly higher risk of encountering insurance disputes when filing claims.
Impact of Hurricanes and Windstorms on Texas Businesses
Texas’s Gulf Coast, including Houston, is highly susceptible to hurricanes and windstorms, which pose substantial risks to commercial properties. In 2024, Hurricane Beryl made landfall in Texas as a Category 1 hurricane, causing widespread damage and leaving over 1.5 million customers without power. The storm resulted in estimated insured losses of approximately $2.7 billion in the United States, highlighting the significant financial impact such events can have on businesses and insurers alike.
Additionally, the Texas Windstorm Insurance Association (TWIA) reported in its 2023 Rate Adequacy Analysis that their current rates are inadequate by 22% for commercial policies, reflecting the increasing costs associated with windstorm coverage in the region.
Escalating Commercial Insurance Premiums
Commercial property owners are bearing the financial brunt of a volatile insurance market. In the first quarter of 2023 alone, premiums spiked by an average of 20.4%, the highest quarterly jump in over 20 years. These steep increases are driven by growing catastrophe losses, inflation, and tighter underwriting standards, all of which make fair coverage both more expensive and harder to obtain.
Increased Cost Burden on Businesses
For many Texas businesses, insurance costs are consuming a growing share of revenue. In high-risk regions, commercial property owners now spend as much as 13.4% of revenue on insurance, compared to just 6.7% in 2018. This dramatic shift is reshaping business operations, forcing many to scale back coverage or accept higher deductibles that leave them exposed after a storm.
These statistics underscore the need for assertive legal representation. Daly & Black levels the playing field for business owners forced to fight for fair compensation in an increasingly hostile insurance environment.
Common Issues with Commercial Property Storm Damage Claims
Insurance companies are notorious for deploying tactics to reduce or reject payouts, particularly for high-value commercial claims. Some of the most common issues include:
- Denials based on policy exclusions like pre-existing damage, wear and tear, or ambiguous language distinguishing wind vs. flood damage.
- Underpayment using depreciation, inflated deductibles, or improper scopes of work.
- Delays through repeated document requests, extended investigations, or stalled inspections—all designed to pressure claimants into settling for less.
These tactics aren’t just frustrating, they’re strategic. Without legal intervention, many business owners unknowingly accept settlements that fall far short of what they’re entitled to.
Get in contact with one of the experienced commercial storm damage lawyers at Daly & Black, P.C. to make sure that your claim is being handled with due fairness.
Storm Damage Claims Involving Commercial POAs and Shared Ownership Structures
Commercial condominium buildings, business parks, and mixed-use developments are often governed by Property Owners’ Associations (POAs) or business condo boards. These entities typically hold master insurance policies that cover shared structural components, including:
- Roofing and siding
- HVAC systems
- Elevators and stairwells
- Parking lots, signage, and landscaping
Disputes often arise when it’s unclear whether damage is covered under the master policy or a unit owner’s individual policy. Insurers frequently exploit this gray area, deflecting responsibility and delaying payments while stakeholders argue over scope and responsibility.
Add to this the legal complexity of Texas’s Uniform Condominium Act (Tex. Prop. Code § 82.001 et seq.), and it becomes clear why businesses in shared spaces must retain attorneys who understand both insurance law and association governance.
What You Can Claim After Commercial Storm Damage
Commercial policyholders may be entitled to recover far more than just basic repair costs. Structural and roof damage typically forms the backbone of most claims, but that’s often just the beginning. Businesses can also pursue compensation for damaged machinery, contents, and inventory that were compromised by water intrusion or high winds.
When storm damage halts operations, the financial fallout goes beyond physical repairs. Many policies include coverage for business interruption, which can cover lost revenue, ongoing payroll obligations, and even fixed operating costs during the downtime.
Additional expenses incurred to temporarily relocate or restore operations, such as renting alternative spaces or transporting equipment, may also be covered.
Finally, many commercial properties must adhere to updated building codes during repairs. These upgrades, while necessary, can be costly. Fortunately, policies with ordinance and law coverage can help offset these expenses.
Daly & Black ensures every aspect of your loss is evaluated and included in your claim, so you’re not left absorbing costs that should be covered.
Flood Insurance for Commercial Properties: A Separate Necessity
Standard commercial property insurance policies generally exclude coverage for flood damage. To safeguard against the financial impact of flooding, business owners need to secure a separate flood insurance policy. The NFIP, managed by the Federal Emergency Management Agency (FEMA), offers such coverage specifically for commercial entities.
Under the NFIP, commercial property owners can obtain up to $500,000 in coverage for the building and an additional $500,000 for its contents. This includes protection for structural elements, machinery, inventory, and other business-related assets. It’s important to note that each building requires its own policy; multiple structures on the same property cannot be covered under a single NFIP policy.
Additionally, NFIP policies do not cover business interruption losses. Therefore, businesses seeking comprehensive protection may need to explore supplemental policies or endorsements to address potential income loss due to flood-related disruptions.
Before the next storm hits, make sure your insurance coverage is built to protect fully. Daly & Black, P.C. can review your policy and help you understand your rights before and after disaster strikes.
The Daly & Black Difference
At Daly & Black, P.C., we’ve built a national reputation for standing up to insurance companies that act in bad faith. Our team has earned recognition from Super Lawyers and other leading publications, and we have been named Insurance Litigation Firm of the Year, along with multiple prior nominations. But what truly sets us apart is our relentless pursuit of justice for our clients.
We don’t just review policies, we dissect them. We don’t just negotiate, we prepare for trial from day one. That aggressive, detail-driven strategy is why business owners across Texas trust us to handle complex, high-stakes storm damage claims.
Our process begins with a free consultation where we dig deep into your policy and the details of your loss. From there, we gather evidence, confront the insurer head-on, and if necessary, take your case to court. At every step, we keep you informed and in control. You’ll never be left in the dark or wondering what’s next.
With Daly & Black in your corner, you have more than a lawyer, you have a team that is ALL IN. ALL THE TIME.
FAQ
Q: How is a commercial storm damage claim different from a residential one?
A: Commercial claims often involve greater dollar amounts, layered policies, business income losses, and often multiple parties (e.g., landlords, tenants). These factors create more opportunities for insurers to delay, deny, or dispute coverage.
Q: Why are commercial storm claims often denied or underpaid?
A: Insurers rely on vague language, technical exclusions, and drawn-out investigations to reduce their liability. They often undervalue repairs, ignore business interruption losses, or exploit policyholders’ lack of legal guidance.
Q: What losses can be included in a commercial storm damage claim?
A: Beyond structural repairs, policyholders may claim lost income, damaged inventory or equipment, temporary relocation costs, and code upgrade expenses.
Stand Up to Insurers with Daly & Black in Your Corner
You’ve invested too much in your business to let an insurance company decide what it’s worth. At Daly & Black, P.C., we hold insurers accountable, no exceptions. If your Houston commercial property has suffered storm damage, don’t wait.
Call now to schedule your free consultation with a Houston commercial storm damage claim lawyer.
Daly & Black is ALL IN. ALL THE TIME.