A fire at your business can lead to more than just physical damage—it can bring your entire operation to a halt. Whether you’re a small shop in downtown Jackson or a large commercial facility on the Gulf Coast, a fire can trigger a cascade of losses, from property destruction and inventory damage to lost revenue and long-term business interruption. For Mississippi business owners, recovering fully after a fire often depends on one critical factor: how your commercial fire insurance claim is handled.
At Barrett Law, PLLC, we represent business owners across Mississippi whose fire insurance claims have been delayed, underpaid, or wrongfully denied. With decades of legal experience handling fire-related property and business loss cases, Attorney Jonathan Barrett understands how fire losses affect not just property—but livelihoods. If your business has suffered from a fire, it’s essential to understand what types of losses may be covered and how to protect your claim.
Fire Damage in Mississippi Businesses: More Than Just Structural Losses
Mississippi businesses face a real risk of fire-related damage, whether from electrical failures, HVAC malfunctions, kitchen fires, lightning strikes, or arson. When a fire breaks out, it doesn’t just destroy walls and ceilings—it can cause widespread financial and operational loss.
The good news: most commercial insurance policies cover a wide range of fire-related losses. The bad news? Insurance companies frequently minimize payouts, dispute coverage, or delay payments, leaving business owners without the support they need to rebuild and reopen.
What Losses Can Your Mississippi Business Recover in a Fire Insurance Claim?
Here’s a breakdown of common categories of fire-related losses that Mississippi businesses may be entitled to recover under a commercial property insurance policy:
1. Physical Damage to Buildings and Structures
Your policy should cover the repair or rebuilding of any structures damaged or destroyed by fire, including:
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Exterior walls and roofing
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Interior walls, flooring, ceilings
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Electrical, plumbing, and HVAC systems
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Attached structures such as garages or storage units
If the building must be rebuilt to current code standards, ordinance or law coverage may also apply if included in your policy.
2. Damage to Business Personal Property (BPP)
This includes property owned by the business, such as:
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Furniture, fixtures, and shelving
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Office equipment and electronics
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Machinery, tools, and specialized equipment
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Raw materials and inventory
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Leased property for which you are responsible
Policies usually list a dollar limit for this category, and some include replacement cost coverage rather than depreciated value.
3. Inventory and Stock Loss
Inventory destroyed by fire, smoke, or water used to extinguish the flames is usually covered. Insurance companies often undervalue inventory losses, especially for perishable goods or specialty products. Supporting your claim with documentation like purchase orders, receipts, or inventory lists is essential.
4. Loss of Income / Business Interruption
If your operations are shut down due to fire damage, your policy may cover lost income during the time your business is unable to operate. This can include:
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Lost profits
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Ongoing expenses (e.g., rent, payroll, insurance premiums)
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Temporary relocation costs
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Losses due to canceled contracts or missed deadlines
This is typically called business interruption insurance, and the coverage limits and duration vary by policy.
5. Extra Expenses
These are additional costs incurred to keep your business running after a fire, such as:
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Renting temporary office or retail space
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Leasing equipment to replace damaged machinery
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Paying overtime for workers during the recovery period
These expenses are covered under a policy’s extra expense provision, provided they’re reasonable and necessary to minimize further losses.
6. Smoke and Soot Damage
Even if a fire is quickly extinguished, smoke and soot can cause extensive contamination to walls, furniture, HVAC systems, and inventory. Insurance companies may downplay or deny coverage, but smoke damage is often covered and requires professional remediation.
7. Water Damage from Fire Suppression
Water from sprinkler systems or fire hoses can ruin ceilings, floors, inventory, and electronics. This is considered a covered peril if directly related to fire suppression efforts.
8. Code Upgrades and Ordinance Compliance
If your building is older and needs to be rebuilt to meet modern codes, you may need additional coverage for:
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ADA compliance
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Fire suppression systems
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Structural improvements
This is called ordinance or law coverage, and it’s often optional or capped at a set dollar amount.
9. Debris Removal and Cleanup
Clearing the damaged property and removing fire-damaged materials can be costly. Your policy may cover:
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Demolition
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Debris hauling
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Environmental remediation (if hazardous materials were released)
Who Is Affected and Why It Matters
Fire-related business losses affect:
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Small business owners who rely on every dollar to keep the doors open.
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Retailers and service providers who can’t afford weeks of downtime.
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Manufacturers and industrial companies whose operations are halted due to machinery loss.
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Landlords and commercial property owners whose rental income is interrupted.
For many Mississippi businesses, even a short interruption can cause permanent closure, especially if the insurer refuses to pay in full.
Barrett Law, PLLC helps businesses push back against unfair denials, delays, and undervalued claims, ensuring they receive the compensation their policies promise.
Legal Obligations and Statutes: Mississippi Fire Insurance Law
Mississippi Code Annotated § 83-5-45: Unfair Claims Practices
Under this statute, insurance companies must:
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Promptly investigate claims
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Communicate clearly with policyholders
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Pay valid claims without unreasonable delay
Violations of this statute can result in bad faith litigation, allowing the business to recover additional damages, including:
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Attorney’s fees
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Punitive damages
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Emotional distress damages (in some cases)
Practical Tips for Business Owners After a Fire Loss
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Review your policy in detail. Understand your coverage limits, exclusions, and the type of coverage (replacement cost vs. actual cash value).
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Document everything. Take photos and videos of all damage. Save repair estimates, receipts, and business records.
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Get a second opinion. Don’t rely solely on the insurer’s adjuster. Consider hiring an independent appraiser or public adjuster.
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Watch out for delays. If your insurer fails to act promptly, it may be a sign of bad faith.
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Don’t settle too quickly. You may be entitled to more than you think—especially for business interruption or ordinance compliance.
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Consult with a fire insurance claim attorney. If your claim is delayed, undervalued, or denied, legal help may be your best option.
Frequently Asked Questions
What’s the difference between actual cash value and replacement cost coverage?
Actual cash value (ACV) pays for damaged items minus depreciation. Replacement cost value (RCV) covers the cost to repair or replace items with new ones. Most businesses prefer RCV because it results in a higher payout.
Does my policy cover temporary business relocation after a fire?
If you have business interruption or extra expense coverage, your insurer may pay for temporary relocation costs, including rent and setup expenses at a new site.
What if my insurer offers a low settlement?
You don’t have to accept it. You can submit independent estimates, request a formal review, file a complaint with the Mississippi Insurance Department, or hire an attorney to challenge the decision.
Can I recover income I lost while my business was closed?
Yes, if you have business interruption coverage. This includes lost net income, continuing expenses like rent and payroll, and potentially extra expenses.
What if the fire was partially my fault?
Most policies cover accidental fires caused by negligence (like forgetting to turn off equipment), but not intentional acts. Always report the fire honestly and cooperate with investigations.
How long do I have to file a lawsuit against my insurer?
In Mississippi, you generally have three years from the date of loss to file a bad faith or breach of contract lawsuit.
Do I need a lawyer to file a fire claim?
Not necessarily, but if your claim is delayed, underpaid, or denied—or if you’re overwhelmed—consulting a lawyer can make a major difference in your outcome.
What is ordinance or law coverage, and do I need it?
This coverage pays for additional costs to bring your property up to current building codes after a loss. It’s important for older buildings and is often not included in standard policies.
Will my policy cover fire damage to leased equipment?
If you’re contractually responsible for leased equipment, you may be covered under your business personal property provision—but it depends on your policy terms.
Can I sue my insurance company for bad faith?
Yes. If your insurer acts unfairly or unreasonably denies a valid claim, Mississippi law allows you to sue for bad faith, breach of contract, and punitive damages.
Harmed in a Fire in Mississippi? Call Mississippi Fire Insurance Claim Attorney Jonathan Barrett 24/7/365 at (601) 790-1505 for Your FREE Consultation
If your business has suffered fire damage and your insurance company is delaying, denying, or underpaying your claim, you need strong legal support. At Barrett Law, PLLC, we fight for Mississippi businesses—holding insurers accountable and helping you recover every dollar you’re owed.
We serve clients across Jackson, Gulfport, Southaven, Hattiesburg, Biloxi, Olive Branch, Tupelo, Meridian, Pearl, Madison, Greenville, Oxford, Clinton, Horn Lake, Brandon, and throughout all 82 counties in Mississippi.
📞 Call (601) 790-1505 now to schedule your FREE, no-obligation consultation—available 24/7/365. We’re ready to help you rebuild, recover, and move forward.
