Winter Weather Event ‘Fern’ & Lessons from ‘Uri’: Key Insurance Recovery Considerations for Businesses

Recent winter storms across Texas and the southern United States underscore the ongoing insurance-recovery risks posed by extreme weather events. Drawing on lessons from Winter Storm Uri and the more recent January 2026 winter storm, this LawFlash outlines key steps businesses can take to preserve coverage, document losses, and navigate insurance claims following severe winter weather.

Texas and the southern United States up to the mid-Atlantic are once again facing extreme winter weather, a stark reminder of the risks extreme weather poses to businesses and infrastructure. The winter weather event that struck Texas in 2021 showed how quickly freezing temperatures, power outages, and infrastructure failures can result in massive damage and financial losses—from burst pipes and water intrusion to spoiled inventory and operational disruptions—resulting in hundreds of billions in losses.

The Texas 2021 winter weather event, unofficially named Uri, highlighted the critical importance of understanding policy language, coverage triggers, and potential coverage gaps, as well as documenting damage promptly and preparing for multiple or overlapping events. The impact of the recent winter weather event, unofficially named Fern, demonstrates how winter weather events can disrupt operations and trigger the need to maximize insurance assets.

For Texas policyholders, Fern was less severe than Uri, but it reinforces key lessons learned: carefully review coverages and policy language, act early to protect rights, and plan strategically for future winter weather events. These experiences provide essential guidance for fully leveraging insurance assets when winter weather strikes, regionally and nationwide.

This LawFlash outlines five recommended steps to help policyholders preserve and maximize insurance recoveries following severe winter weather events, which often give rise to complex and long-tail losses, including property damage, utility outages, service interruption, and business disruptions.

1. IDENTIFY ALL AVAILABLE INSURANCE POLICIES

Locating and carefully reviewing all potentially applicable insurance policies is a critical first step in seeking recovery following a winter weather event.

For businesses, the most likely sources of coverage include first-party commercial property and business interruption policies. These policies, often marketed under different names by different insurers, may provide coverage for losses caused by freezing temperatures or changes in temperature, ice, snow, wind, and water intrusion.

Key coverages to evaluate include:

• Property damage coverage, which may apply to physical loss or damage to buildings, equipment, inventory, and other property caused by frozen pipes, roof collapse from snow or ice, or water damage following thawing
• Time element/business interruption coverage, which may cover loss of earnings or profits resulting from the inability to operate due to property damage or utility outages
• Contingent business interruption coverage, which may apply when suppliers, customers, or other key business partners suffer winter weather-related damage
• Extra expense coverage for costs incurred to continue or resume operations, such as temporary relocation, emergency repairs, or alternative power sources
• Service interruption coverage for losses caused by power, water, or other utility failures, an especially significant issue during Uri and similar events
• Ingress/egress coverage when access to insured property is prevented due to winter weather-related damage or government restrictions
• Supply chain coverage, which may apply even where disruptions do not involve direct physical damage at the policyholder’s premises

Policy language varies significantly, and coverage disputes often turn on specific wording, exclusions, sublimits, and deductibles. Policyholders should review all potentially applicable policies, including layered or excess coverage.

2. COMPLY WITH NOTICE, PROOF OF LOSS, AND SUIT-LIMITATION REQUIREMENTS

Winter weather event claims frequently involve strict and time-sensitive policy requirements. Policies often require notice of a loss “as soon as practicable,” submission of a sworn proof of loss within a defined timeframe, and compliance with suit-limitation provisions that may shorten the time to bring a claim.

In the aftermath of Uri, many policyholders faced challenges meeting these requirements due to ongoing outages, limited access to property, and evolving damage assessments. Nonetheless, failure to comply can jeopardize recovery.

Policyholders should carefully review and calendar all notice, proof-of-loss, and suit-limitation deadlines and consider involving insurance recovery counsel, brokers, or claims professionals early in the process.

3. DOCUMENT DAMAGE AND MAINTAIN RECORDS

Accurately documenting winter weather event losses takes time, but early and consistent documentation is critical. Businesses should begin tracking damage and losses as soon as it is safe to do so.

Key steps include:

• Photographing and video-recording damage to property, equipment, and surrounding areas
• Separating damaged and undamaged property where possible
• Itemizing damaged or lost items and collecting purchase records, invoices, and receipts
• Tracking extra expenses incurred to mitigate losses or resume operations, including:
• Emergency repairs and protective measures
• Temporary power generation or water supply
• Relocation or housing costs
• Overtime labor and expediting expenses
• Retaining accounting records relevant to lost income or increased costs
• Obtaining utility outage records, government notices, and other relevant reports

Importantly, losses can evolve over time, particularly where freezing causes latent damage that only becomes apparent weeks or months later. Therefore, policyholders should continue monitoring conditions and updating their claims as additional damage or loss becomes known.

4. COOPERATE WITH THE INSURANCE COMPANY STRATEGICALLY

Insurance policies generally require cooperation with an insurer’s investigation. Cooperation, however, does not require policyholders to accept unreasonable demands or overly narrow interpretations of coverage.

Policyholders should respond to reasonable requests while remaining mindful of requests that may be burdensome, irrelevant, or improperly designed to limit coverage. Clear communication and careful documentation of interactions with insurers can help preserve rights, remind insurers of their good faith claim handling obligations, and avoid disputes later in the claims process.

5. ENGAGE AN EXPERIENCED RECOVERY TEAM

Winter weather events, particularly when they disrupt utilities or critical infrastructure, can strain internal resources as businesses focus on safety, continuity, and recovery. The experience of Uri, including its impact on the Texas Grid, highlighted the value of assembling a coordinated team—including insurance recovery counsel, brokers, accountants, engineers, and other specialists—to manage the claims process efficiently and effectively.

Early engagement of experienced advisors can help policyholders navigate complex coverage issues, maximize recoveries, and avoid common pitfalls that arise during large-scale weather events.

HOW WE CAN HELP

Our lawyers stand ready to assist businesses ahead of natural and manmade disasters with insurance coverage preparedness, as well as after the event with claim notification and presentment, loss assessments, information gathering, proofs of loss, claim negotiation, and—if necessary—coverage litigation to enforce policyholders’ insurance rights and maximize insurance recoveries.

Our team members, including those in our Dallas, Houston, Miami, and Washington, DC offices, are positioned to assist clients in preserving and pursuing recovery from their insurers for their property damage and other covered losses. Our lawyers help clients navigate the wide range of legal and regulatory challenges that can arise from severe weather events and natural disasters.

For more information, please visit our Severe Weather and Natural Disasters page >>