When a hailstorm, microburst, fire, or plumbing failure damages a business property, the insurance claim usually involves more moving parts than a homeowner claim. There may be a building limit, a business personal property limit, business income coverage, and a coinsurance clause, all on the same policy. As a commercial public adjuster in McAllen, we help owners and managers in Hidalgo County and the Rio Grande Valley (RGV) document the loss, read the policy, and present the claim clearly. This page explains how commercial claims typically work and where they tend to go wrong.
Types of Commercial Property Damage We See
McAllen-area commercial buildings are exposed to the same severe weather as homes, but the construction and the stakes are different. Common losses include:
- Roof damage to flat and low-slope systems (TPO, modified bitumen, built-up) and to metal roofs on warehouses and shop buildings. See our roof damage claims page.
- Hail and wind damage to rooftop HVAC units, skylights, signage, storefront glass, and exterior finishes. The April 28, 2023 wind event, for example, produced NWS-surveyed damage to commercial roofs and walls along W Business 83 in McAllen (NOAA NCEI event record).
- Water damage from failed supply lines, sprinkler leaks, and wind-driven rain through damaged roofs.
- Fire and smoke losses in restaurants, retail, and mixed-use buildings. See fire damage claims.
- Contents and inventory losses, including equipment, fixtures, and stock.
We work with retail, office, warehouse and industrial, restaurant, multifamily and apartment, mixed-use, and HOA-managed properties, whether owner-occupied or tenant-occupied.
Typical Documentation for a Commercial Claim
Commercial insurers usually ask for more financial and property records than residential carriers. Starting early saves weeks. Our claim documentation checklist covers the basics; the table below adds the commercial-specific items.
| Document | Why it matters |
|---|---|
| Full policy, declarations, and all endorsements | Shows limits, deductibles, coinsurance, valuation (RCV or ACV), and whether limits are scheduled or blanket |
| Statement of values (SOV) | Used for multi-building or blanket policies and for coinsurance calculations |
| Photos, video, and roof reports | Ties damage to the date of loss; drone and 3D imaging help on large roofs |
| Leases and HOA governing documents | Decide who is responsible for the roof, structure, improvements, and contents |
| Profit and loss statements, tax returns, payroll | Support a business income or extra expense claim |
| Inventory and equipment lists with invoices | Support business personal property values |
| Emergency repair and mitigation invoices | Show reasonable steps to protect the property |
Common Commercial Claim Issues
Business income and business interruption
Business income coverage is designed to replace lost net income and continuing expenses while a covered loss is repaired. Disputes often center on the length of the period of restoration, the waiting period, and how projected sales are calculated. Clean financial records make this part of the claim far easier to support.
Coinsurance
If the building is underinsured relative to the coinsurance percentage on the declarations, the payment may be reduced. Some policies use an agreed value endorsement that suspends coinsurance. Checking the insurer's valuation of the building is an important step.
Scheduled vs. blanket limits
A scheduled policy assigns a separate limit to each building or location. A blanket policy shares one limit across several locations. On a large storm that hits multiple buildings, this difference can affect how much is available for any one structure.
Tenant vs. owner responsibilities
Leases often split responsibility: the owner insures the building, and the tenant insures its improvements and betterments, inventory, and equipment. When both file after the same event, the claims should be coordinated so items are not omitted or claimed twice.
Code upgrades on older buildings
The City of McAllen adopted the 2024 ICC codes effective January 1, 2026. Repairs may trigger code requirements, but payment for them depends on ordinance or law coverage. See our McAllen building codes page.
Insurance Settlement Considerations
Commercial settlements are often paid in stages. Many replacement-cost policies pay actual cash value first and release recoverable depreciation after repairs are complete, often within a deadline. Business income may be paid in partial advances as records are reviewed. Large or complex scopes sometimes need a supplement when hidden damage appears during repairs. If the dispute is only about the amount of loss, the policy may allow appraisal. You can test rough numbers with our claim calculator before you talk to the carrier.
How a Commercial Public Adjuster May Help
Joseph Dittman, a licensed Texas public adjuster, and our public adjusters represent the policyholder only. On commercial claims, that work may include:
- Reviewing the policy, endorsements, and statement of values before the inspection
- Inspecting the building and preparing a line-item estimate in Xactimate
- Organizing business income and extra expense documentation with your accountant
- Coordinating with tenants, property managers, and HOA boards
- Meeting the insurer's adjusters and engineers and responding to information requests
- Reviewing the carrier's estimate; see our insurance estimate review service
A public adjuster cannot guarantee a result, and coverage always depends on the policy and the facts. Public adjusters are not attorneys; if a claim moves toward litigation, consult a Texas attorney. Fees are disclosed in a written contract before any work begins; Texas law caps public adjuster compensation at 10% of the insurance settlement.
Policyholder Responsibilities
- Report the loss promptly and in writing.
- Take reasonable steps to prevent further damage, such as tarping, water extraction, and securing openings, and keep the receipts.
- Keep damaged materials or photograph them before disposal.
- Provide requested records, including financials for business income, within a reasonable time.
- Submit a sworn proof of loss if the policy or insurer requires it.
- Cooperate with inspections and examinations allowed by the policy.
Applicable Policy Limitations
Commercial forms vary widely, and endorsements can change the base form. Common limitations include:
- Flood exclusion on most standard commercial property forms.
- Wind/hail deductibles stated as a percentage of the building value, sometimes applied per building.
- Cosmetic damage exclusions for metal roofing and siding on some policies.
- Wear and tear, deterioration, and maintenance exclusions.
- Vacancy provisions that can limit coverage when a building has been vacant for a stated period.
- Sublimits for items such as signs, outdoor property, debris removal, and ordinance or law.
Hidalgo County is not in the TWIA catastrophe area, so McAllen businesses typically carry wind and hail coverage through their regular commercial insurer. If you are unsure what your policy includes, a Free Claim Review is a good starting point. For a broader look at storm documentation, read how to document commercial property damage after a storm.
Frequently Asked Questions
Do you work on claims for apartment complexes and HOAs?
Yes. Multifamily buildings and community associations often involve many units, shared roofs, and questions about which party insures which component. We can help organize the building-by-building scope and the documentation the insurer requests. Coverage depends on the association documents and the policy.
Does my commercial policy cover lost income while my business is closed?
Only if your policy includes business income (business interruption) coverage and the shutdown was caused by covered physical damage. Most forms also apply a waiting period and limit the period of restoration. Your declarations page and the business income form will show what applies.
What is a coinsurance penalty?
Many commercial forms require you to insure the building to a stated percentage of its value. If the limit is too low at the time of loss, the insurer may reduce the payment proportionally. Reviewing values and limits before a loss is the best protection; after a loss, the calculation should be checked carefully.
I lease my space. Who files the claim for the roof?
It depends on the lease. Many leases make the owner responsible for the structure and roof, while the tenant insures its improvements, inventory, and equipment. Both parties may have claims from the same event, and they should coordinate.
Is flood damage covered under my commercial property policy?
Standard commercial property forms generally exclude flood. Flood coverage usually comes from a separate NFIP or private flood policy. Wind-driven rain through a storm-created opening is a different question and may be covered depending on the form.
How are public adjuster fees handled on a commercial claim?
Fees are disclosed in a written contract before any work begins; Texas law caps public adjuster compensation at 10% of the insurance settlement. You also have 72 hours after signing to rescind the contract.