Brian Cone is Vice President of The Cone Company which provides out of home insurance. Yesterday Brian talked about why general liability insurance is a must and what perils it covers. Today Brian talks about billboard replacement insurance. You can reach Brian at BCone@theconeco.com, 334-272-4791
Why is Inland marine insurance used for static and digital billboard replacement coverage? Billboards aren’t on bodies of water.
Inland Marine has become a catch-all property insurance for many types of equipment and commercial property involved in construction, transportation, and communication. The history of Inland Marine coverage goes back when it was the compliment to Ocean Marine coverage, covering goods in transit on ships. Inland Marine covered these goods from the time they were unloaded from ships until they arrived at their final destination. Over time, it has evolved to cover a host of property types that don’t have a home, so to speak, or a location that is clearly owned by the insured.
What’s covered by an Inland Marine policy?
Most Inland Marine policies pay to repair or replace damaged signs from the following causes of loss:
- Wind
- Hail
- Lightning (** Sometimes excluded or sub-limited)
- Weight of Ice, Snow, or Sleet
- Explosion
- Certain types of water damage but not gradual seepage and rot, and not flood
- Fire
- Smoke
- Riots
- Vandalism
- Theft
- Power Surge & sudden and accidental damage due to short circuiting
- Vehicles
- Aircraft
- Sudden or Accidental tearing, cracking, burning, or bulging
- Freezing
- Volcanic Eruption
Perils like Flood and Earthquake have to be covered with separate policies that fluctuate in price depending on the sign’s location.
What’s excluded from Inland Marine Coverage?
- earth movement (sinkholes,mud/landslides)
- neglect
- war
- nuclear hazard
- intentional loss
- governmental action
For additional premium, there are products and endorsements available to cover damage due to earth movement and government action. Another endorsement that can be requested is “ordinance and law” which covers the additional expenses over the replacement cost stated in the policy for complying with new construction codes and ordinances.
Does the same policy cover replacement for my digital billboards and static billboards?
The Inland Marine policy covers repair and replacement of all listed static and digital billboards by 1 of 3 methods:
- Replacement Cost Value – the cost to repair or replace your sign using current construction and material prices
- Actual Cash Value – What the sign is worth at the time of the loss, more explicitly, Replacement Cost Value minus depreciation
- Agreed (or Stated) Value – this option is not often offered, but it takes the guesswork out by paying only total losses at an agreed value regardless of current costs. This coverage does cover repairs, only total losses.
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