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Is Your Adult Residential Care Facility Really Covered?

By Heather Brown
August 11, 2017

Adult residential care Facilities are opened in residential settings across the United States. In many cases, the owner and their family live in the Facility with the residents. One of the most common conversations we have with these adult residential care owners is why a Homeowner’s insurance policy isn’t enough to protect their business.

Homeowner’s insurance policies commonly exclude business operations. In these cases, an insurance company has the right to deny coverage for a claim if they find out you have a business they were unaware of. A specialized commercial property policy is the best solution to fully protect your Facility, business, and all contents.

Understanding Commercial Property Insurance

In the rare cases where a Homeowner’s policy doesn’t exclude business, there is still a chance you don’t have the insurance protection you need. Here are 7 vital business coverages you won’t find on your Homeowner’s insurance policy:

Business Property

Business property consists of the contents in your adult residential care Facility that you use for business purposes. Make a list of your appliances, equipment, medical supplies, and furniture that you need to run a quality care Facility. If you had to replace all of these, how much would it cost?

Residents Personal Property

If you live in the adult residential care Facility with your residents. This isn’t included in your personal property. Clothing, keepsakes, and other prized possessions of the resident need protection too. Finding a commercial property insurance policy that includes both resident personal property and business property is the best solution.

Business Income & Extra Expense

What happens when a covered event destroys or damages your adult residential care Facility leaving it uninhabitable? Being forced to close your doors temporarily is detrimental to your finances. Loss of business income and extra expense protect your business by providing the lost income and extra expenses you incur until rebuilt. These costs include the revenue you would have brought in, relocation for your residents to temporary housing, and money to pay your bills and your employees.

Equipment Breakdown

Appliances, heating/air-conditioning units, computers, etc., are vital to providing quality care to your residents. Unfortunately, equipment isn’t made to last a lifetime, so it is important to have the right protection in place. Equipment breakdown insurance pays the costs associated with fixing or replacing the equipment or other property damaged from the breakdown.

Employee Dishonesty

Every business owner does their best to hire honest employees. There are times when owners are faced with the loss of property or financial resources due to employee dishonesty or theft. Employee dishonesty coverage pays the costs to replace stolen property or money resulting from an emloyee.

Property Off-Premises/In-Transit

On occasion, you may move property from your adult residential care Facility to a storage facility or for an outing with residents. Insurance for property off-premises or in-transit pays to replace this property in the event it is damaged or stolen.

Where can I find the right commercial property insurance for my adult residential care Facility?

Personal Care & Assisted Living Insurance Center, LLC (PCALIC, LLC) specializes in providing insurance for adult residential care. Our unique commercial property insurance includes each of these valuable coverages so you can rest assured you are protected 24 hours a day. Contact one of our account managers for a personalized Adult Residential Care Facility Property Insurance quote today.

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