Historic properties require specialized Property insurance to make sure the costs involved to restore the property are covered. In addition, revenue-producing historic properties need Business Interruption (BI) and Extra Expense coverage tailored to address their unique exposures. Historic properties typically take more time to restore or rebuild after a covered property loss because of their significant aesthetic and architectural details, construction techniques and the artisans required to perform the work. For example, a historic property may include features such as hand-carved millwork, historic flooring and fine art murals.
If a historic property – whether it’s a hotel, restaurant, country club, museum or landmark movie theatre – depends on visitor and guest revenue to keep it operating and suffers a loss as a result of a fire, the extra time and expenses involved in finding the right materials and craftsmen to restore the damaged building may result in loss of income and extra expenses that standard Business Interruption and Extra Expense insurance does not typically contemplate. In our white paper, “After a Loss: Get Up & Running with Business Interruption Coverage for Historic Properties,” we discuss the need for specialized BI and Extra Expense coverage for historic properties, which takes into account the increased time and process involved in restoring a damaged structure as well the loss of revenue and extra expenses that could be incurred.
The white paper also reviews the need to include an extended period of indemnity in the Business Interruption and Extra Expense policy to respond to the historic building owner’s needs following a property loss. Claims examples are provided illustrating the type of losses that could upend a historic property’s operation if the right Business Interruption and Extra Expense coverage is not in place.
Distinguished Programs specializes in insuring historic properties with Property coverage that includes several key features including Historic Replacement Cost, Extended Replacement Cost, Guaranteed Replacement, and Historic Cash Settlement. We also provide Business Interruption and Extra Expense insurance designed for these unique properties.