A restaurant fire claim opens on your hood records. Its size depends on how long the doors stay closed.
Last updated: October 2026
Grease fires, hood and duct fires, smoke through the dining room, a fire next door, or a long outage. We document and negotiate the full loss for the policyholder: buildout, kitchen equipment, food and liquor, and the income lost until you can serve again. When a question turns on the law or your lease, we tell you plainly to take it to your attorney.
Start a claim review
Tell us what happened. A licensed Texas public adjuster will review the loss with you, and tell you straight whether you have a fight worth having. The review is free.
For fire claims, we call you back within 1 hour and visit your property within 24 hours or less.
Failure to clean was a factor in 22% of U.S. restaurant and bar fires, and cooking equipment caused 61%. That is why the carrier asks for your hood cleaning and suppression records early. The size of the claim then turns on the closure.
Source: NFPA, Structure Fires in Eating and Drinking Establishments, 2010 to 2014 data.
The first 72 hours after a restaurant fire in Texas
The fire department controls the scene first. At Mia's Table in Houston in August 2026, crews cut power and gas. What you do in the next three days decides what evidence survives and what the claim can prove.
Wait for the all-clear. Texas health department guidance says not to re-enter until the fire department clears the building.
Stop food service and report the closure. In Houston, a fire is an imminent health hazard. Report it on the Bureau of Consumer Health Services Emergency Reporting Form, or call (832) 393-5100.
Keep the parts. Fryer and range controls, suppression cylinders, nozzles, the pull station, fusible links, grease filters and electrical panel parts are evidence. Altering a scene before it is documented is spoliation. Consider your own fire investigator before demolition.
Pull your hood and suppression records today. The carrier will ask for them early. Photograph the hood cleaning sticker and the suppression tag before anything moves.
Photograph and video everything before cleanup: every room, the hood and duct, the roof, equipment nameplates, the walk-in contents and the bar.
Separate and log the food. Treat food as possibly contaminated by smoke, fumes and suppression chemicals, including heat-exposed cans. Houston requires a discard log with approximate weight and disposal method.
Give written notice to your insurer and log every call. In Texas, the claim clock starts with written notice. Keep a dated log of every call from the carrier, landlord, franchisor, fire marshal and health department.
Track every dollar from day one. A kitchen trailer, generator or refrigerated trailer rental and contractor overtime are extra expense, which starts at once. It is only recoverable if it is documented.
Sources: Hoodline (Aug 2026); DSHS Fire Emergency Guidance; Houston Health emergency guidance and Requirements to Resume; Tex. Ins. Code §542.051; ISO CP 00 30.
Fire in your home kitchen instead? See our residential guide.
Your hood cleaning and suppression records will shape the claim
Most restaurant fires start at the cooking line. Grease or cooking oil was involved in 68% of restaurant cooking fires, and deep fryers in 31%. The usual path runs from the fryer to the hood to the duct, so the carrier's first questions are about your NFPA 96 cleaning and your suppression service.
How often NFPA 96 says the exhaust system is inspected for grease
| Cooking operation | Inspection interval |
|---|---|
| Solid fuel cooking | Monthly |
| High volume (24-hour, charbroiling, wok) | Quarterly |
| Moderate volume | Semiannually |
| Low volume (churches, day camps, seasonal businesses, senior centers) | Annually |
NFPA 96, Table 11.4 (2017 edition), per a municipal summary.
What should be on file
- A cleaning certificate on the premises after each service, naming the company, the technician and the date (NFPA 96 §11.6.13)
- A hood sticker showing the next service date
- Semiannual suppression system service under NFPA 17A
- Fusible links replaced at least every six months
- The UL 300 listing and model of your wet chemical (Ansul-type) system
- Proof that every fire marshal and health inspection deficiency was corrected
Why UL 300 matters
Kitchens moved from animal fat to vegetable oil, which autoignites at about 685°F. The UL 300 standard took effect on November 21, 1994. Its test uses a fryer fire, and older dry chemical systems could not pass it. Most standard-market insurers require full-service restaurants to have a UL 300 system.
The protective safeguards (P-5) condition
Many restaurant policies list the hood system as a protective safeguard, symbol P-5. Under the standard form, fire loss is excluded if a scheduled system was not kept in working order or an impairment went unreported. There is a 48-hour exception for breakage, leakage, freezing or opened heads.
In Whaley v. Ohio Security, a Washington appeals court affirmed a griddle-fire denial in June 2025. Earlier inspections had flagged UL 300 and NFPA 96 problems the owner never reported. Courts have ruled both ways on these conditions.
In Texas, Insurance Code §862.054 says breaching a fire policy provision on personal property does not void the policy unless the breach contributed to the loss. In Greene v. Farmers (2014), the Texas Supreme Court limited that statute to an insured's breach of a policy-created obligation, not a clause that defines coverage. How those rules apply to a P-5 denial on your facts is a legal question. Take it to your attorney.
Sources: USFA Restaurant Fires (2004); Village of New Paltz NFPA 96 summary; InspectPoint (Mar 2026); EMC Insurance; Amerex; FSR Magazine; ISO CP 04 11; IRMI (Jan 2025); Whaley filing (Aug 2025); Tex. Ins. Code §862.054; Cozen O'Connor (2014).
How restaurant fires start, and how far the damage reaches
U.S. restaurants and bars averaged about 7,410 reported structure fires a year from 2010 to 2014, and 68% stayed confined to the object where they started. The claims that need help are the ones that spread. Cooking starts most fires, but electrical and after-hours fires do far more than their share of the damage.
Fryer to hood to duct.
At Mia's Table in August 2026, the owner said the fire began at the fryers and spread into the ductwork; investigators had not set an official cause.
What it means for your claim: the carrier asks for the cleaning interval, any areas not cleaned, suppression service dates and the UL 300 listing.
Electrical, often after hours.
Electrical fires were 9% of restaurant and bar fires but 21% of the damage. Fires between midnight and 6 a.m. were 18% of fires but 45% of the damage.
What it means for your claim: expect a forensic electrical engineer. If building wiring is involved, the landlord's maintenance duties come in, and that belongs with your attorney.
A fire next door.
In 2017, a six-alarm fire in a vacant Dallas washateria spread into four adjacent businesses.
What it means for your claim: each tenant claims on its own policy, and that carrier may then pursue the tenant where the fire began.
Smoke beyond the burn.
At Humble Pie in Dallas in 2022, part of the kitchen burned and heavy smoke damaged the rest of the dining and retail area.
What it means for your claim: dining rooms, bars, soft goods, ceiling tiles and HVAC belong in the scope even when the fire stayed in the kitchen.
Sprinkler or suppression discharge.
At a Harris County pho restaurant in 2020, a sprinkler head held a grease fire until firefighters arrived.
What it means for your claim: water and agent cleanup can be most of the claim, and the activation is a record the carrier will review.
Smoke is the most underscoped part: On the day the adjuster walks through, the dining room may look fine and the fire was "just in the kitchen." Grease-laden smoke still travels through the air and the HVAC and coats surfaces far from the burn. We bring in industrial hygienists to test and document how far it reached, so the scope reflects the real remediation, not a quick clean-and-repaint.
Sources: NFPA 2010 to 2014 via National Fire Fighter and Warren Forensics (secondary); Fox 26 (Aug 2026); NBC DFW (2017); CBS Texas (2022); ABC13 (2020).
What your policy covers: building, buildout, equipment, food and liquor
A restaurant claim turns on which coverage parts you bought. The figures below are ISO standard-form terms. Many carriers use their own wording, so the policy in hand controls.
| Piece of the loss | Where it usually sits | What to check |
|---|---|---|
| Building, fixtures, permanently installed equipment | Building coverage, only if a building limit is shown (CP 00 10) | Whether the lease puts the building on you or the landlord |
| Tenant improvements and buildout | Business personal property, as improvements and betterments | Who owns the improvements under the lease |
| Kitchen equipment, smallwares, furniture | Business personal property | Actual cash value unless the replacement cost option was chosen; the coinsurance percentage; whether the limit reflects today's prices |
| Food and liquor stock lost to fire | Business personal property | Purchase invoices and inventory counts |
| Food lost to refrigeration failure or outage | Spoilage (CP 04 40), with its own limit and deductible | Whether power outage is a selected cause; any refrigeration maintenance agreement condition |
| Tear-out and haul-off | Debris removal: 25% of the loss plus the deductible, with up to $25,000 more | Whether a burned kitchen exceeds it |
| Residue the carrier calls a pollutant | Pollutant cleanup: $10,000 per premises per year | Every cleanup that year draws on the same cap |
| Mold after firefighting water or a long outage | Fungus: $15,000 annual aggregate (CP 10 30) | The aggregate against the mold scope |
| Code upgrades | Base form: the lesser of $10,000 or 5% of the building limit; more under CP 04 05 and CP 04 26 for tenant improvements | Code-upgrade limits for the building and the buildout |
| Lost income and extra expense | Business income and extra expense (CP 00 30) | The limit against 12 months of net income plus operating expenses |
| Payroll | Payroll limitation (CP 15 10) or discretionary payroll (CP 15 04) | Which endorsement applies, and its day count |
| Health department closure for contamination | Food contamination (CP 15 05); income starts 24 hours after notice | Whether the order cites contamination, not only fire |
| Losing a below-market lease | Leasehold interest (CP 00 60) | It does not pay for expiration or nonrenewal |
| Flood | Excluded under the standard special form | A separate flood policy and its reporting deadline |
How a policy applies to your facts is a legal question when it is disputed. We document the loss and present it; coverage interpretation in a dispute belongs with your attorney.
Check the limits against current prices. Producer prices for AC and refrigeration equipment rose 5.7% and fabricated structural metal 7.4% in the 12 months to September 2026. Under coinsurance, a limit that falls short can cut what you are paid. See the coinsurance penalty calculator.
Sources: ISO forms via InsuranceXDate (CP 00 10, CP 00 30, CP 00 60, CP 04 05, CP 04 26, CP 04 40, CP 10 30, CP 15 04, CP 15 05, CP 15 10); BLS PPI Table 2 (Oct 2026).
Reopening: health department, fire marshal and permits
A Texas food establishment closed by a fire needs the regulatory authority's approval before it resumes. That approval, not the repair, ends the closure. Houston's sequence is below; other cities set their own steps, so call your local health department.
Houston's reopening sequence
Stop food operations and report the closure on the Bureau of Consumer Health Services Emergency Reporting Form. Questions go to CHS@houstontx.gov or (832) 393-5100.
Segregate unsalvageable food and record its approximate weight and disposal method.
Wash, rinse and disinfect surfaces hit by flood water or sewage. Food-contact surfaces then get a second rinse, sanitizing and air drying.
Get Houston Permitting Center approvals to replace large floor-mounted equipment and repair surfaces and structure: 1002 Washington, (832) 394-8810.
Restore utilities and equipment. Sanitize ice machines and flush water lines after an interruption. A flooded grease trap needs a permitted transporter.
Request the pre-opening inspection and get approval to resume.
The fire marshal and the hood
Reporting on Mia's Table said Houston's NFPA 96 requirements typically mean duct repair, system testing and Houston Fire Marshal's Office sign-off. Under the state model food ordinance that cities adapt, rebuilding 20% or more of the area needs plan review first.
Statewide rules every Texas kitchen faces
- The Texas Food Establishment Rules list fire, flood, extended power or water interruption and sewage backup among emergencies that may create an imminent health hazard
- State guidance says to replace equipment that cannot be fully sanitized
- TCS food held above 41°F for more than 4 hours must be discarded
- DSHS Retail Food Safety answers at (512) 834-6753
Your TABC permit
Report unsalvageable alcohol to TABC on Form DA-001. Flood-contaminated product may not be sold, and repackaging is prohibited. A destroyed license can be reprinted through TABC's AIMS system. If you move to a new location, you must apply, and the move can be protested. The food and beverage certificate requires a permanent kitchen. TABC Licensing is at (512) 206-3360.
Sources: DSHS Fire Emergency Guidance and Reopening guidance (rev. Sept 2017); Houston Health; Hoodline (Aug 2026); DSHS Model City Food Ordinance; University of Houston TFER summary; TABC Disaster Assistance; Alco. Bev. Code §§11.08, 28.18.
Lost income: how restaurant business interruption is calculated
Under the standard form, business income pays lost net income plus continuing expenses, including payroll, starting 72 hours after the loss. For a restaurant, the claim rests on daily sales history, the payroll endorsement and how long reopening takes.
Measure it in your own numbers
- Daily net sales from POS reports, by daypart and channel: dine-in, to-go, delivery platforms and catering
- Covers and check average, comps and voids
- Food and beverage cost, which mostly stops during a closure
- Continuing costs: rent, CAM, debt service, insurance, salaried managers, franchise and technology fees, minimum utility charges
- Seasonality, projected from the same months of prior years rather than an annual average
How we build it
We do not hand the carrier one calculation. We model the loss several independent ways, against your real sales history and seasonality, against the remediation, rebuild and re-inspection timeline, and against the ramp back to normal covers, and use those models against each other. The look-back period matters too: a soft year inside a multi-year average can drag your baseline down when it does not reflect normal operations. Try the numbers yourself at our business income worksheet.
Keeping your staff: payroll coverage and its limits
Payroll is a business decision with claim consequences. CP 15 10 can limit payroll to a set number of days, 60 or 90 being common, or exclude job classes. CP 15 04 covers payroll you choose to keep paying for named classes, such as chefs and key managers. With a 90-day limitation and a six-month rebuild, payroll after day 90 is uninsured unless discretionary payroll applies. Only 48% of Texas operators said they had enough staff for demand in a survey the Texas Restaurant Association reported in March 2024.
What sets the period of restoration
- Houston Permitting Center permits, then the pre-opening inspection and approval
- Fire marshal sign-off on the repaired hood and suppression system
- Plan review before rebuilding 20% or more of the area
- Equipment lead times; one walk-in maker quoted about 6 to 8 weeks for made-to-order units and 2 to 3 weeks for stock units in 2022
- Code-driven delay, which falls outside the standard period unless CP 15 31 applies
Extra expense to document
Verify against your policy's wording.
- A kitchen trailer or commissary
- Generator and refrigerated trailer rental
- Expedited hood and duct fabrication
- Contractor overtime
- Temporary signs and reopening marketing
After you reopen
Extended business income runs 60 days after the property is restored. An extended period of indemnity, if you bought one, buys more time for sales to recover.
of lost income go unpaid under the standard form's waiting period. Extra expense starts at once.
ISO CP 00 30
of extended business income after reopening, unless the policy bought a longer extended period of indemnity.
ISO CP 00 30
is where hourly payroll stops under a common 90-day payroll limitation, unless discretionary payroll applies.
ISO CP 15 10 and CP 15 04
Sources: ISO CP 00 30, CP 15 04, CP 15 10, CP 15 31; Texas Restaurant Association (Mar 2024); FCSI (Apr 2022); Houston Health; DSHS Model City Food Ordinance.
Tenant or landlord: who rebuilds what, and what happens when the fire starts next door
Your buildout and your lease
Tenant improvements are covered as business personal property under the standard form, but policies differ on where they sit. The Texas Property Code's commercial tenancy chapter has no section on casualty or rent abatement, so your lease controls. Whether you owe rent while closed, and who must rebuild, are lease questions for your attorney.
Landlord and tenant can decide differently. After the 2017 Rainbow Lounge fire in Fort Worth, the property owner planned to demolish while the club owner looked for a new location. That put relocation, income and a TABC location change in play at once.
When the fire starts next door
Each tenant claims on its own policy first. After a 2018 North Dallas restaurant fire, smoke and water reached a neighboring tailor who tried to save wedding dresses due the next month. Smoke scope, clean or replace, is the main fight. A grease fire at a Converse restaurant forced evacuation of a whole strip center.
Civil authority coverage pays when an order bars access because of damage to other property within 1 mile, after 72 hours and for up to 4 weeks. If an anchor store is scheduled as a leader location, dependent property coverage (CP 15 08) may apply.
Be careful what you sign
After paying, your carrier may pursue a hood cleaner, suppression contractor, electrician, equipment maker or the tenant where the fire began. After a loss, recovery rights can be waived only for related parties. A release signed with a vendor or neighbor after the fire can impair that recovery. Show any release to your attorney before you sign.
Sources: IRMI, improvements and betterments; Tex. Prop. Code ch. 93; NBC DFW (2017); CBS Texas (2018); Fox San Antonio; ISO CP 00 30, CP 15 08, CP 00 90.
Power outages and spoiled food: Beryl, the derecho and Uri
Outages are the second big restaurant loss category in Texas. In Houston, a power outage over 4 hours, a water interruption over 1 hour or a boil water notice is an imminent health hazard. Food service stops unless you have an outage plan the health department accepted.
| Event | How power was lost | How the standard forms read it |
|---|---|---|
| Uri, February 2021 | ERCOT ordered rotating outages from 1:25 a.m. on Feb 15; more than 4.5 million homes and businesses lost power | Utility services time element does not cover rolling blackouts without physical damage, and spoilage excludes utility failure from fuel shortage or government order |
| Beryl, July 8, 2024 | Widespread physical damage to lines; about 2.7 million people in southeast Texas lost power | Damage to utility property can trigger utility services coverage, but overhead transmission lines are covered only if selected |
| Houston derecho, May 16 to 17, 2024 | More than 1 million customers lost power, and about 555,000 were still out a day later | Wind damage and outage losses together |
The losses were real. During Beryl, Riel in Montrose went nearly a week without power, with its walk-in down and produce spoiling. Its chef partner reported losing "tens of thousands of dollars" in revenue. After Uri, Coolgreens said none of its inventory was usable.
Some restaurants also sued CenterPoint after Beryl, alleging gross negligence. One Galveston restaurant group's suit put damages above $100 million. Those are allegations, not findings. If you have both an insurance claim and a utility dispute, keep them coordinated with your attorney.
After Beryl and the July 2026 storms, TDI asked insurers to suspend the vacancy condition for displaced policyholders. For July 2026 flood losses, TDI reminded flood policyholders of the 60-day reporting window.
Sources: Houston Health; Wikipedia (2021 Texas power crisis, 2024 Houston derecho); NHC Beryl report; ISO CP 04 17, CP 04 40, CP 15 45; Click2Houston (July 2024); NRN (Feb 2021); Galveston Daily News and KHOU (July 2024); TDI B-0007-24 and B-0006-26.
The shortfalls in these claims are predictable. So is how we fight them.
Large losses in this sector are contested on a handful of recurring fronts. None of these mean the carrier is acting in bad faith, it means the policy is complex and the default reading of it favors the insurer unless someone pushes back with documentation. Here's what they try, and what we do about each:
On a significant restaurant fire, the carrier's first expert is usually a cause-and-origin investigator working to NFPA 921 and NFPA 1033. Intentional fires were 4% of restaurant fires but 10% of the damage from 2010 to 2014. A building consultant prices the hood, duct, equipment and buildout. On larger income claims, a forensic accountant rebuilds your sales from POS, tax and bank records.
The insurer may raise the P-5 condition, citing a missed hood cleaning, an expired suppression tag or an unreported impairment.
Our move: We assemble the full record trail for the policy period: certificates, tags, service reports and proof each deficiency was corrected. Whether the condition applies to your facts goes to your attorney.
A reservation of rights letter arrives while the insurer keeps investigating.
Our move: It is not a denial. We answer the requests in writing and keep the documentation moving; coverage arguments and any examination under oath go to your attorney.
The dining room, bar and HVAC get scoped to a clean-and-repaint.
Our move: We use industrial hygienist findings to establish the true contamination footprint and the real remediation needed.
The closure is set shorter than permits, fire marshal sign-off and the pre-opening inspection allow.
Our move: We reconstruct the genuine timeline, including remediation, rebuild, re-inspection and the ramp back to normal covers, and model the loss several ways.
Kitchen equipment, hood and duct are priced as repairs or damaged sections, and actual cash value is paid until replacement is complete.
Our move: We document replacement-cost entitlement and the true cost and lead time of like-kind equipment.
Spoiled and contaminated stock gets shaved, or an outage gets read as an excluded government order or fuel shortage.
Our move: We document the loss from purchase invoices, counts and discard logs, and apply the valuation the policy supports.
A rebuilt hood and suppression system is called betterment.
Our move: We identify the code-driven work the rebuild requires and tie it to your ordinance-or-law coverage. Run your limits at our ordinance or law calculator.
Sources: Wikipedia, Fire investigation; NFPA 2010 to 2014 via National Fire Fighter; IRMI, reservation of rights and examination under oath; ISO CP 04 11.
Texas rules on deadlines, appraisal and public adjusters
How fast a Texas insurer must move
| Step | Deadline |
|---|---|
| Acknowledge the claim and request documents | 15 days after written notice (30 business days for surplus lines) |
| Accept or reject in writing | 15 business days after receiving all requested items (30 days if arson is suspected) |
| Pay an accepted claim | 5 business days (20 business days for surplus lines) |
| Delay that triggers damages | More than 60 days after receiving all requested items |
| TDI-designated weather catastrophe | Each deadline gets 15 more days |
An insurer that is liable but misses these deadlines owes 18% annual interest as damages, plus attorney's fees; weather claims carry a different interest rate. Whether that applies to your claim is for your attorney. Check your dates at our Texas prompt payment deadline calculator.
Proof of loss and appraisal
Under the standard form, a sworn proof of loss is due within 60 days after the insurer asks for it, so the request date sets the clock. For disputes over the amount of loss, TDI's July 2026 bulletin says policyholders generally can demand appraisal. In 2026, the Texas Supreme Court ordered appraisal of a Dallas food-distribution warehouse loss from a ruptured fire-suppression water line. Whether appraisal fits your dispute is a question for your attorney.
Public adjuster rules in Texas
- A public adjuster's total fee, including expenses, may not exceed 10% of the settlement
- If the insurer commits in writing to pay policy limits on a total fire loss of real property within 72 hours of the loss report, no percentage fee is allowed
- You may cancel the contract in writing within 72 hours of signing, for any reason
- Claim checks must name you as payee, and a public adjuster may not endorse one for you
- A commercial policy may not bar you from hiring a licensed public adjuster
- Public adjusters may not repair the property, profit from firms working the claim, or practice law
Sources: Tex. Ins. Code §§542.051 to 542.060, 4102.007, 4102.103, 4102.104, 4102.156, 4102.158; 28 TAC §19.708; TDI, Public adjusters; TDI B-0006-26; ISO CP 00 30; In re Ace American (Tex. 2026).
Documents to pull this week
The hood and suppression records come first, because the carrier will ask for them early. Pull the rest before cleanup and before the first records request.
Fire protection
hood cleaning certificates and service reports, including any areas not cleaned; a photo of the hood sticker; suppression service reports and tags; fusible link replacement dates; UL 300 listing and model; gas or power shutoff test records; Class K extinguisher tags; fire marshal and health inspection reports with proof of each correction.
Policy and lease
the full policy with every form and endorsement, especially safeguards (P-5), business income options, payroll, spoilage, utility services, ordinance or law and food contamination; any agreed value worksheet (CP 15 15); the lease casualty, restoration, rent abatement, insurance and waiver of subrogation clauses; franchise agreement casualty and reopening provisions.
Sales and payroll
POS exports of daily sales for 24 to 36 months by daypart and channel; monthly P&Ls; three years of tax returns; bank and merchant processor statements; payroll registers by employee and role; the schedule as of the loss date.
Buildout, equipment and stock
buildout invoices and drawings, including any tenant improvement allowance; equipment list with make, model, serial, age and invoices; food purchase invoices for the last 30 days; smallwares and inventory counts; refrigeration maintenance agreement; hood cleaner, suppression, pest control and grease trap contracts.
Regulators and outages
the health department closure report; a food discard log with approximate pounds and disposal method; TABC permit, food and beverage certificate, alcohol inventory and invoices, and Form DA-001; utility outage notices, generator receipts and temperature logs.
Scene and contacts
photos and video before cleanup; a dated log of every call and request from the carrier, landlord, fire marshal and health department.
The insurance company's adjuster works for the insurance company.
After a major loss, the carrier sends its own adjuster, and often a forensic accountant and engineering consultants, all retained by the insurer. They are competent and they are not neutral; their job is to resolve the claim on terms favorable to the company that pays them. A public adjuster is the licensed counterweight: we represent the policyholder only, we build and present the claim, and we negotiate the settlement.
On a restaurant loss the asymmetry is the whole problem. The carrier brings a cause-and-origin investigator, a building consultant and, on larger income claims, a forensic accountant. We document the full loss with the same rigor, and we are paid a percentage of what we recover, so our incentive is your number. We are licensed public adjusters, not attorneys. Texas law bars public adjusters from practicing law, so questions about your lease, the safeguards condition, an examination under oath, or a claim against a vendor, neighbor or utility belong with your attorney.
What happens after you call.
Loss review & policy analysis
We read the actual policy - limits, BI and extra-expense provisions, equipment and inventory valuation, ordinance-or-law, exclusions - and assess the full scope before anyone commits to a number.
Document everything, including the grease-smoke contamination
Structure, kitchen equipment, inventory, and the true reach of grease smoke through the dining room and HVAC. We bring in industrial hygienists to establish the real remediation required, while the evidence still exists.
Build the business-interruption claim - modeled several ways
From real sales and financial records: seasonality, the kitchen rebuild-and-re-inspection timeline, the post-reopening ramp, and the right look-back baseline, modeled independently and used against each other to substantiate the full loss.
Present, negotiate, and settle
We present the documented claim, contest the predictable shortfalls, and negotiate the settlement on your behalf through to resolution.
Questions restaurant owners ask.
Will insurance pay if the fire started in the kitchen hood?
Often the answer turns on your records. If your policy lists the hood system as a protective safeguard (P-5), the insurer will check whether it was kept in working order and whether any impairment went unreported. Gather your NFPA 96 cleaning certificates and suppression service tags for the full policy period. If the insurer denies on that condition, take the denial to your attorney.
What records will the insurance company ask for after a restaurant fire?
Expect early requests for hood cleaning certificates, suppression reports and tags, and fire marshal and health inspection history. Later come tax returns, bank statements, POS data, payroll, the lease and maintenance records. Pull them before cleanup starts.
Do I need health department approval to reopen after a fire in Texas?
Yes. A Texas food establishment closed by a fire needs the regulatory authority's approval before it resumes. In Houston that means reporting the closure, permits for major repairs, and a pre-opening inspection. Reporting on Houston says fire marshal sign-off on the hood and suppression system is typically required too.
Does my policy cover food that spoiled during a power outage?
Usually only if you have spoilage coverage with power outage as a selected cause, or utility services coverage. The standard spoilage form excludes utility failure from a fuel shortage or government order, which is how Uri's rotating outages read. Beryl's outages involved physical damage to lines, which reads differently, but overhead transmission lines are covered only if selected.
Will insurance keep paying my employees while the restaurant is closed?
It depends on your payroll endorsement. CP 15 10 can limit payroll to a set number of days, often 60 or 90, or exclude job classes. CP 15 04 covers payroll you choose to keep paying for named classes, such as chefs and key managers. Read yours before you decide who stays on the schedule.
Who pays to rebuild the buildout in a leased restaurant?
Tenant improvements are covered as business personal property under the standard form, but policies differ on where they sit. Your lease decides who owns them and who must rebuild. Pull your buildout invoices, drawings and any tenant improvement allowance, and take the lease questions to your attorney.
Do I still owe rent while I'm closed?
The Texas Property Code's commercial tenancy chapter has no section on casualty or rent abatement, so the lease controls. That is a question for your attorney. Leasehold interest coverage (CP 00 60) may pay if a favorable lease is cancelled by covered damage.
Can I salvage beer, wine or liquor after a fire?
Report unsalvageable alcohol to TABC on Form DA-001. Flood-contaminated product may not be sold, and repackaging is prohibited. Manufacturers and distributors generally may not replace product damaged in your possession, so keep the alcohol inventory and invoices for the claim.
How long does business income coverage last?
Through the period of restoration, starting 72 hours after the loss, plus 60 days of extended business income after reopening. An extended period of indemnity adds more time if you bought it. Code-driven delay is excluded unless CP 15 31 applies.
The fire started in the business next door. Whose insurance pays?
Start with your own policy. Each tenant claims on its own coverage, and your carrier may later pursue the tenant where the fire began. If an order barred access, civil authority coverage may pay for up to 4 weeks. Do not sign a release with the neighbor without your attorney.
What is a reservation of rights letter?
Notice that coverage may not apply while the insurer keeps investigating. It is not a denial. Common triggers include a safeguards question, an undetermined cause, a long closure and late notice. Answer requests in writing, and take coverage arguments and any examination under oath request to your attorney.
How quickly must a Texas insurer respond to my claim?
It has 15 days after written notice to acknowledge the claim, 15 business days after receiving all requested items to accept or reject it, and 5 business days to pay. Surplus lines carriers get longer to acknowledge and pay. TDI-designated weather catastrophes add 15 days to each deadline.
What does it cost to hire a public adjuster?
We work on a percentage of the recovery, with no upfront cost. We're only paid if and when you recover, which aligns our incentive with maximizing your settlement. Fee specifics are discussed up front before you commit to anything.
Tell us what happened. We'll tell you straight whether you have a fight worth having.
No cost, no obligation. The fastest path is the phone - for a major loss, call and talk to a person today. A licensed Texas public insurance adjuster will review the loss with you.
713-369-4300Start a claim review
Tell us what happened. A licensed Texas public adjuster will review the loss with you, and tell you straight whether you have a fight worth having. The review is free.
For fire claims, we call you back within 1 hour and visit your property within 24 hours or less.
A major loss is decided in the first moves. Make yours count.
Talk to a public adjuster who works only for you. No upfront cost - we're paid a percentage only if you recover.
713-369-4300Crossroads Insurance Recovery Advocates · TDI License 1924788
This page is general educational information about commercial property claims, not legal advice or advice on your specific claim. Crossroads Insurance Recovery Advocates, Texas public adjuster entity license #1924788.
Don't take our word for it
- NFPA, Structure Fires in Eating and Drinking Establishments (repost, National Fire Fighter)
- Warren Forensics, Structure Fires in Eating and Drinking Establishments (2025)
- USFA, Restaurant Fires (2004)
- Village of New Paltz, Kitchen Hood Cleaning Requirements (NFPA 96 summary)
- InspectPoint, Kitchen Hood Suppression Inspection Requirements (2026)
- EMC Insurance, Chemical Fire Suppression Systems for Commercial Cooking
- Amerex, What Is a Class K Fire
- FSR Magazine, Reasons to Upgrade to a UL 300 Suppression System
- Wikipedia, Fire investigation
- IRMI, Protective Safeguards Endorsements Need a Warning Label (2025)
- Whaley v. Ohio Security, Answer to Petition for Review (2025)
- Tex. Ins. Code §862.054
- Cozen O'Connor, Texas Supreme Court Clarifies the Anti-Technicality Statute (2014)
- ISO CP 00 10, Building and Personal Property Coverage Form
- ISO CP 00 30, Business Income and Extra Expense
- ISO CP 00 60, Leasehold Interest
- ISO CP 00 90, Commercial Property Conditions
- ISO CP 04 05, Ordinance or Law
- ISO CP 04 11, Protective Safeguards
- ISO CP 04 17, Utility Services
- ISO CP 04 26, Ordinance or Law, Tenant's Improvements
- ISO CP 04 40, Spoilage
- ISO CP 10 30, Causes of Loss, Special Form
- ISO CP 15 04, Discretionary Payroll Expense
- ISO CP 15 05, Food Contamination
- ISO CP 15 08, Business Income From Dependent Properties
- ISO CP 15 10, Payroll Limitation or Exclusion
- ISO CP 15 15, Business Income Report/Worksheet
- ISO CP 15 31, Increased Period of Restoration
- ISO CP 15 45, Utility Services, Time Element
- IRMI, Reservation of rights
- IRMI, Examination under oath
- IRMI, Improvements and betterments
- Tex. Prop. Code ch. 93
- Houston Health, emergency guidance for food establishments
- Houston Health, Requirements to Resume Normal Operations
- DSHS, Fire Emergency Guidance
- DSHS, Reopening a Retail Food Establishment After an Emergency
- DSHS, Model City Food Ordinance
- University of Houston, Food Safety Enforcement (TFER summary)
- TABC, Disaster Assistance for Licensees
- Alco. Bev. Code §11.08
- Alco. Bev. Code §28.18
- Texas Restaurant Association, Texas Foodservice Industry Surpasses $100 Billion in Sales (2024)
- FCSI, Walk-in Industry Lead Times (2022)
- BLS, PPI Detailed Report, Table 2 (Oct 2026)
- NHC, Tropical Cyclone Report: Hurricane Beryl
- Wikipedia, 2024 Houston derecho
- Wikipedia, 2021 Texas power crisis
- Nation's Restaurant News, Texas Restaurants Emerge From Winter Storm (2021)
- Click2Houston, Restaurant Owner Suing CenterPoint (2024)
- Galveston Daily News, Galveston Restaurants Join $100M Lawsuit (2024)
- KHOU, Houston Restaurants' CenterPoint Lawsuit
- TDI Bulletin B-0007-24
- TDI Bulletin B-0006-26
- Fox 26, Mia's Table Fire (2026)
- Hoodline, Mia's Table (2026)
- ABC13, Pho X Trang grease fire (2020)
- CBS Texas, Shanghai Restaurant strip center fire (2018)
- CBS Texas, Humble Pie fire (2022)
- NBC DFW, S. Lancaster Rd strip center fire (2017)
- NBC DFW, Rainbow Lounge fire (2017)
- Fox San Antonio, Converse grease fire
- Tex. Ins. Code §542.051
- Tex. Ins. Code §542.055
- Tex. Ins. Code §542.056
- Tex. Ins. Code §542.057
- Tex. Ins. Code §542.058
- Tex. Ins. Code §542.059
- Tex. Ins. Code §542.060
- Tex. Ins. Code ch. 4102
- Tex. Ins. Code §4102.104
- 28 TAC §19.708
- TDI, Public adjusters
- In re Ace American Insurance Co. (Tex. 2026)