Why Cell Tower Insurance Is Essential

When a cellular phone service provider wants to place a tower on privately owned property, zoning laws must be followed and attorneys must draw up a formal agreement between the property owner and the company. Maintenance of the tower is the responsibility of the cell provider, but there are some special considerations in terms of insurance that must be covered by both parties. While most people have never heard of cell tower insurance, there are companies that specialize in the most unique types of insurance that have arisen from the information age. If you are approached to place a tower on your property, knowing why insurance is necessary, what must be covered by the policy, and how much insurance is required is essential prior to agreeing to host the tower.

Whether the cell tower is going to be placed on private residential property in a rural area or on a commercial property in an urban area, traditional property insurance will not cover the special risks introduced by the presence of such a curiosity. To reduce vandalism and tampering, many companies will have an artist disguise the tower so that most people do not know that it stands in their midst. If the equipment is damaged by vandals or a storm, the cell provider’s insurance policy will pay for the replacement, but any damage to your property is not covered unless they make provision in their policy.

Damage to your property caused by the collapse of the tower must be covered under additional property insurance. Contact your personal insurance agent to discuss what additional coverage will be required to repair property damage. Depending on the surroundings, the liability portion of the policy can be extremely expensive because of the possibility of damage to property that is in close proximity. When purchasing cell tower insurance, consider all the possible directions that the tower could fall. Share your findings with the insurance agent and then require the cell provider to compensate you accordingly in the property rental agreement.

The cellular provider should name you as an additional insured party on their insurance policy to compensate you for damages. Since both insurance companies will cover you, the two companies will determine which will pay to repair the property in the event of a catastrophic collapse. Special consideration should be given to environmental contamination. Investigate any local ordinances that require those who host cell towers to have their soil tested later. Ask the insurance agent to set the best possible coverage amounts on the policy to prevent personal loss from property damage or liability lawsuits.

While hosting a cellular tower can seem like easy money, there are some special considerations to ensure the safety of your property and the surrounding area. Investigate companies that provide cell tower insurance and choose a reputable company known for paying claims in a timely manner. If possible, speak with others who host cellular towers and gain some of their insight prior to signing the agreement.

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