What Happens After the Fire? What the Kids Choice Sports Center Fire Teaches Us About Commercial Property Insurance

In late May of 2025, I was driving to Richmond when I saw something that made me slow down and do a double take. On the side of the highway sat the burned-out remains of the Kids Choice Sports Center.

Now, I’ve passed that facility dozens of times over the years. If you’ve ever seen it, you know what I’m talking about—a massive, bright yellow building, probably close to 30,000 square feet. Indoor soccer fields, community programs, birthday parties. It’s the kind of place that brings life to a neighborhood.

But this time, it looked like a giant burnt marshmallow—charred and completely gutted.

And that’s when it hit me: if something like this happened to your business, would you actually be covered?

I made a mental note to dig into the story. And what I found was a real-world case study in how fast a fire can turn into a multi-million-dollar insurance claim—and how many business owners are completely unprepared.

Let’s break it down.

The Fire Itself

According to news reports, the fire broke out in December of 2024. Officials believe it started due to an electrical issue—common, but deadly. And on that particular day, winds were whipping at 30 to 40 miles per hour. That wind turned the fire from an isolated incident into a three-alarm disaster.

The building was destroyed. Flames spread to several nearby homes. And in the aftermath, Kids Choice posted a GoFundMe to raise money—not just for rebuilding, but for employee wages, renters who used the space, and even the homeowners affected next door.

So now we’re talking about more than just a building. We’re talking about contents. Business interruption. Extra expense. Liability to third parties. And this is where most business owners start to realize just how complex these claims can get.

Building Coverage: It All Starts Here

If you’re a commercial property owner or tenant, the first place to look is your building limit.

The Kids Choice facility wasn’t some 5,000 square foot office. It was massive—at least 30,000 square feet. So the replacement cost? It could easily be in the millions. And that number isn’t just about square footage—it’s based on construction type, labor costs, material inflation, and zoning updates.

If you insured your building 3 or 4 years ago and haven’t updated your policy, you’re probably underinsured today.

Contents Coverage: Everything Inside Counts

Now let’s talk about contents. This includes everything from sports equipment to office furniture to electronics.

In a facility like Kids Choice, the gear alone could be worth hundreds of thousands. Think soccer nets, gym flooring, birthday party setups, tech equipment, vending machines.

Contents coverage tends to be pretty straightforward—until everything has burned up and you don't have an inventory to show the claims adjuster. Or until you realize that your policy depreciates everything down to a few cents on the dollar.

The time to make sure you have enough contents coverage is before the fire—not after.

Business Income & Extra Expense: The Silent Killers

This is where most people get caught flat-footed: business income and extra expense coverage.

Let me put it plainly—losing your building is devastating. But losing your income for 6, 9, or 12 months? That can wipe you out completely.

Kids Choice was asking for help covering payroll just days after the fire. That makes me question whether they have a clear income recovery plan. And I don’t blame them. Most business owners don’t know how to calculate how long they’d be down—or what their policy would actually pay.

Here’s what matters:

• How long would it take to reopen?

• Do you have coverage for temporary space?

• Are salaries, rent, and utilities included?

• How many months does your policy pay out?

If your policy only gives you 3 months of income replacement and you’re shut down for 12? You’re going to run out of money.

The Timeline Nobody Talks About

When I drove past in May—six months after the fire—nothing had been rebuilt. No construction crews, no foundation poured. .

And this isn’t unusual. People seriously underestimate how long it takes just to start rebuilding after a fire.

You need to:

• Line up architects and engineers

• Hire a general contractor

• Get permits and zoning approvals

• Wait on insurance adjusters

• Negotiate settlements

That process can take 6–12 months before construction even begins. So if your policy is built around a 90-day recovery, you’re in serious trouble.

Liability Exposure: When the Fire Spreads

Here’s where the claim gets even more layered.

Remember, the fire didn’t just destroy Kids Choice—it spread to neighboring houses. Those homeowners will likely file claims under their own policies first. But their carriers may turn around and subrogate—which means they’ll try to recoup their losses from Kids Choice’s insurance.

Now you’re facing potential liability exposure. And that leads to some tough questions:

• Was the electrical system up to code?

• Were there known maintenance issues?

• Could the fire have been prevented?

If the answers are unclear—or unfavorable—it could result in a lawsuit.

And that’s when your general liability and umbrella policy need to be ready to defend you. Because if you’re found negligent, the damages could be catastrophic.

Real Talk: Most Businesses Aren’t Ready

I talk to business owners every week who think they’re covered.

They have a building policy. They checked the box for contents. They vaguely remember something about income protection. But they haven’t read the exclusions. They haven’t updated their limits in years. And they’ve never once asked, “What if I’m down for a year?”

That’s why I’m sharing this story.

The Kids Choice fire isn’t some rare, freak event. Fires happen every day. Electrical issues, kitchen mishaps, arson, lightning—doesn’t matter. One spark can take down your business.

And when that happens, your policy is either a lifeline… or a locked door.

So Let Me Ask You This:

If your business burned down tonight…

• Would your building limit be enough to rebuild?

• Would your contents coverage replace your equipment, tech, and furnishings?

• Would you have enough income coverage to pay yourself and your team for 6–12 months?

• Would your policy fund a temporary space while you rebuild?

• Would your liability coverage defend you if others were affected?

If you hesitated on any of those questions, it’s time to revisit your policy.

What You Can Do Right Now

1. Get a second opinion. Let someone walk through your policy and flag gaps. It doesn’t cost you anything to ask.

2. Update your building and contents values. Don’t rely on outdated numbers from pre-COVID construction costs.

3. Extend your business income coverage. Make sure you’re covered for the real recovery timeline, not just 90 days.

4. Check for liability protections. Especially if you own a facility near homes, schools, or shared spaces.

   
   

Final Thoughts

The Kids Choice fire was tragic—but it was also a case study in risk.

It exposed how fast a single incident can create ripple effects that touch every corner of your business and your insurance policy. From rebuilding costs to liability lawsuits, from payroll protection to renter losses—it’s all connected.

If this story made you pause, that’s a good thing.

Reach out. Let’s talk through your coverage. Let’s make sure that if something like this ever happens to you, your policy isn’t the problem—it’s the solution.

You can contact me here https://www.insuranceforentrepreneurs.net/contact-8

Now go build something great—and make sure you protect it like it matters. Because it does.