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Hail the size of golf balls came crashing through windows and roofs from a recent hail storm in Colorado. As a result, cannabis licensees and building owners who rent to them are likely to see an increase in hail deductibles in Colorado. Even more concerning, we’re aware of one cannabis specific insurance carrier that excludes hail and wind damage. This means your claim could be denied. Not a good surprise, if you’re insurance broker failed to notify you of this type of exclusion.
Claims for damaged roofs, buildings, heating and air conditioning, and windows disrupted many marijuana operations. Not only financial damage from property, but potential loss of income or additional expenses. These types of losses can easily approach 6 figures.
For indoor cultivators, the heating and air conditioning systems are expensive and necessary for maintaining the correct level of temperature and humidity while growing cannabis. These units can easily cost $20,000 and installed on the roof makes them vulnerable to the weather.
Other claims may involve new roofs, windows, and equipment damaged when windows broke. With the number of claims being filed, the indication from our underwriters is deductibles will rise to allow recovery by the insurance carriers due to their heavy losses.
For those who haven’t experienced a hail loss now maybe the time to review your property insurance to determine if a separate deductible applies to hail damage. Even more importantly, a review of the insurance policy is warranted to determine if hail has been excluded. Always find a competent and licensed insurance broker in your state of operation.
DISCLAIMER: Material presented by Owner website is intended for information purposes exclusively. It is not meant for professional insurance or legal advice, to induce or solicit new clients, and must not be construed as such. Each individual situation is unique and requires a licensed insurance broker or attorney in your state to evaluate and recommend insurance or provide legal advise respectively. Each insurance company, policy, and broker are unique with their terms,conditions, and product offerings placing the responsibility of the user to conduct and rely on their own due diligence.