Spring hailstorms roll through Denton fast and hard on a regular basis. Residents are relieved when they are over and there is no sign of a tornado. But that relief doesn't mean that they don't come without substantial property damage.
Maria's daycare was hit by one of these storms recently. Her windows were shattered. Part of the roof was peeled back by lifting shingles. The damage was extensive enough that she had to move the kids out of the building for a period of time while repairs were being performed.
She filed a claim with her insurance company, assuming it would cover all of the damage. But then she got the numbers from her adjuster which left her with a sense of disbelief. Her deductible was higher than she remembered. And there was a special roof limit in her policy that no one had ever explained.
The hail claim payout wasn’t enough to cover all the repairs. Not even close. Maria had to dip into her savings just to make payroll and patch the roof.
Stories like Maria’s are happening more and more across Texas. For daycares, the problem isn’t the storms. It is the way insurance policies are written today. Maria needed some help! And we bet you do too.
Texas Is Leading the Nation in Billion Dollar Weather Events
In 2024, the United States as a whole experienced 24 different Billion Dollar Claim weather events. That's a lot of money! And to no one's surprise, Texas had more of those billion-dollar storms than any other state. We have a sense of doing things bigger than others.
Hail, wind, fires and freezes tore through neighborhoods, towns, and cities across Texas. Especially the Red River counties. These storms are hitting harder and more often than ever before. Daycare centers and everyone else is feeling the financial pressure from this activity.
When damage happens, daycares need to fix things fast. They have kids to care for, staff to support, and safety standards to meet. A long delay can lead to lost income, lost trust, and sometimes even lost licenses.
As these weather events grow, having the right insurance becomes even more important. And that brings us to the next challenge Maria faced. Making sure that your daycare insurance policy responds as expected.
Wind and Hail Damage Can Wipe Out Your Cash Flow
Maria’s commercial property policy had a wind and hail deductible based on a percentage of her property's reconstruction value. She had not really paid attention to this until her claim was in process. Her building was insured for $500,000, and the deductible was 3 percent of that amount. That meant she had to pay $15,000 out of pocket before her insurance company began paying on the claim.
For a daycare like hers, that kind of hit is tough for her cash flow. There are supplies to buy, staff to pay, and rules to follow. Big deductibles can crush a budget overnight.
Maria realized that even with insurance, she wasn’t really protected the way she thought she was. But that wasn’t the only surprise waiting in her policy.
Roof Claims Are Getting Tighter on Older Buildings
Maria’s daycare operates in a older building close to the square in Denton. It’s been a daycare facility for over twenty years. She loves the charm of the place, and families do too. Unfortunately, the insurance companies see it differently. They see its age as a potential risk.
Her daycare insurance policy has a rule for roofs that were more than ten years old. Instead of paying to replace the entire roof for hail damage after the deductible has been satisfied, the company only pays what the old roof was worth at the time. That’s called Actual Cash Value and reduces the claim payout substantially with age.
So even though her roof was badly damaged, the payout was much smaller than she expected after the depreciation and deductible were subtracted. When she tried to get a new roof, the quotes from the roofing contractor were significantly higher than what claim payment from the insurance carrier would cover.
Older buildings are not uncommon in childcare. But if your policy limits roof coverage, you could be left with a big repair bill. Maria was left frustrated.
Your Daycare Policy Terms May Be Changing Without You Realizing It
When Maria first got her daycare insurance policy, it looked simple enough. But every year at renewal, the terms changed a little. Higher deductibles. New limits. More exclusions. All she remembered was that the premium kept going higher and higher. She didn't realize how drastic these changes had modified her hail coverage.
She was busy managing staff, keeping up with licensing rules, and marketing her business. Like many daycare owners, she paid the insurance renewal and kept going thinking she was covered. It wasn’t until disaster struck that she realized how much she needed help on this front.
Insurance policies today often add limits and rules quietly at renewal time. If you’re not reading the fine print, or working with someone who does, you could be left with gaps you didn’t even know existed.
You Need a Risk Strategy That Fits Childcare
Maria learned a lot from her storm claim. The biggest lesson was that a daycare needs more than just a basic policy. It needs a plan. Unfortunately, this lesson was a very expensive mistake. She decided to call Insurance For Texans after the repairs had been completed and the dust settled. She wasn't going to experience this again.
When Maria connected with our insurance agent who is an expert in childcare centers, she noticed something different. They asked her questions about her business. They were getting to know her and her operations. What she didn't realize is that those questions were allowing our expert to assess her potential risk and find a solution that fit her customized needs.
True Texas Education Insurance is here to help Maria and daycare owners just like you find the right commercial property insurance policy. We live and work here in Texas just like you. We understand what Mother Nature is capable of when the weather turns sideways. We also understand that Texas daycares don’t have time for insurance surprises. They need simple answers and fast solutions.
Click the button below to get protection designed for your daycare center with True Texas Daycare Insurance.