July 7th, 2014

Commercial Insurance US

My OC is the owner of a carpentry business that has just burned to the ground (he owns the building in rural Maine). I am trying to establish a reasonable scenario in which the insurance does not cover everything that was lost. One of the ideas I came across in my searching is related to additional riders for things like fine arts. The business specialized in furniture making, but the OC was an artist, as well, and his highly sought-after work was destroyed. I toyed with that idea, but could not make it work.

Other ideas included having recent updates to the building or expansions that were not covered by the policy, or having other valuable pieces that were being restored, but none seem quite right, and I don't feel knowledgeable enough to write about it.

In general, I am looking for insurance lingo and concepts that I could use to establish significant financial losses (around $30,000 or more that isn't covered) due to the fire. The insurance would cover much of the losses, but not quite and the difference is financially ruinous for the OC.

I've googled 'commercial insurance losses' and 'common insurance mistakes' and terms of that ilk, but am feeling a overwhelmed by the options. I want to come up with something simple and straightforward that I can summarize in one conversation.

Thank you in advance!