Tips for renewing commercial insurance policies

Hurricane Ian changed the landscape in many different ways for Southwest Florida. One of those major changes is in the insurance industry. Insurance claims and insurance policies have been the topics of discussion for many businesses as insurance rules and coverage prices have dramatically changed for commercial real estate owners in Florida.

Blake Day, president of Day Adjusting and Consulting, has a passion for helping policy holders overcome the challenges they face with insurance claims. With more than 15 years of indepth knowledge of the insurance industry, Day is a recognized as an expert in property insurance claims. He offers advice to commercial and residential property owners and would like to share a few tips to those in the process of renewing their coverage or seeking new coverage.

Day’s tips on the importance of getting the correct commercial insurance policy type.

RCV vs. ACV Policies: A Replacement cost value (RCV) policy covers the amount of money needed to repair your property at today’s prices of building supplies. An Actual Cash Value (ACV) covers the cost to replace your roof or other items at the price of materials when originally installed. Most policies in Florida are RCV policies. Unless the property is brand new, we suggest always getting a RCV policy.

Know your Deductibles: Your de- ductible is the amount you’re responsible for before your insurance company starts to pay and in Florida, you are REQUIRED to pay your deductible. Your all-perils deductible applies to any event that would occur to your property EXCEPT a hurricane. Hurricane deductibles apply to named storms such as Hurricane Ian. Your named deductible can be a flat specified amount, or it can be based on a percentage of your property’s insured value. If your commercial property has multiple buildings make sure to clarify with your agent if your deductible is per building or per occurrence. It’s imperative to ask your agent what kind of deductible you have.

Importance of O & L Coverage: Make sure you have coverage for Ordinance and Law (O&L). If a building code requires an update, O&L coverage means the insurance company would be responsible to bring the building up to code. If you do not have O&L, any building code upgrade would be out of pocket as the insurance company would only be responsible for the expense of building back to the original state prior to damage. Due to the ever-changing nature of Florida building codes, we suggest that you ensure that your policy has O&L coverage.

Appraisal Provisions: Appraisal is an alternative dispute resolution that allows for an independent third party to assess the value of damages. Having this provision can often times prevent having to sue your insurance company for a dispute. We highly suggest having Alternative Dispute resolution provisions.

Coinsurance Penalty: Does your commercial policy have a coinsurance penalty? Coinsurance penalties often range from 70%-100%. A 70% coinsurance penalty would require that your property is insurance for at least 70% of its total value. A 100% coinsurance penalty means that your building must be insured for 100% of what it is worth. If your insurance company decides at the time that you submit a claim that you are underinsured, they can assess a significant penalty and not pay you the full value of your claim. To ensure that you are insured properly.

Day Adjusting & Consulting is locally owned and operated. The team of adjusters advocate for policyholders when filing an insurance claim, residential and commercial. Whether the claim has already been filed, needs to be filed, or has been closed with an unsatisfactory payout, Day’s company can represent the policy holder at any point in your claim process, even if your claim has been denied.

Blake Day, president of Day Adjusting, has over a decade of experience in the insurance industry. With local offices, contact him at (855) 729-0838 or contact@dayadjusting.com.

Stevens Construction awarded construction of The Island Cow

Stevens Construction has been awarded the construction management services of The Island Cow, located on Periwinkle Way in Sanibel, announced Daniel Adams, Stevens Construction executive vice president.

Stevens Construction is building a 5,754-square-foot restaurant with indoor and outdoor dining, and a commercial kitchen with a walk-in cooler and freezer. To complement the Sanibel location, The Island Cow will feature Florida-style details such as a metal roof with a thatched roof entryway, outdoor tiki bar, indoor/outdoor bar and vibrant colors. The new The Island Cow is 1,000-square-foot larger than the original building that perished in an after-hours fire in 2022.

Stevens Construction is currently working through the preconstruction, providing budgeting, project scheduling and cost-savings suggestions as the design progresses. Southview Studios is the architect of record and Haley Ward, Inc. is the civil engineer.

Construction of The Island Cow is slated to begin in August and be completed in spring 2024.