Category: Claims


How to Advise Your Clients: Is Cosmetic Damage Covered by Home Insurance?

Posted by: Admin

Home insurance policies can be difficult to navigate no matter how long you have been in the industry. So when it comes to areas of home insurance coverage that seem to always be changing, it’s important to ensure clients fully understand what their policy details.

Cosmetic damage is one of these ever-evolving areas. And as insurance agents, one of the most-asked questions from clients is something along the lines of are cosmetic damages covered under my insurance plan? Because cosmetic damage is a somewhat vague area of insurance, your clients may not fully understand what is technically considered cosmetic damage and how it relates to their unique policy.

Read on to learn how you can better advise clients about cosmetic damage.

What Is Cosmetic Damage?

Cosmetic damage varies state to state, but is essentially damage that affects the appearance, but no the function, of the roof, whereas the roof’s function is to serve as a barrier from weather-related damage. On the other hand, physical damage, such as denting, marring, or pitting affects the appearance of the roof, but not the intended purpose, which is to prevent water from getting into the home. Considering this can be a tricky area of a home insurance policy to navigate, making sure your clients fully understand what is and isn’t cosmetic damage can save both parties a headache.

New Endorsements Affect Cosmetic Damage Coverage

Living in a part of the country that experiences frequent volatile weather (think: hailstorms, strong winds, and excess rain) means your clients’ homes will be more susceptible to cosmetic damage.

In the past, this wasn’t an issue as standard home insurance policies didn’t draw a distinction between cosmetic damage and any other type of damage. However, in recent years, certain companies that make insurance policies and endorsements have attempted to exclude coverage for damages that are purely cosmetic.

With the introduction of these new insurance policies and endorsements, your clients’ home insurance policy may exclude cosmetic damage, resulting in losses that are not covered.

While this isn’t the case for every home insurance policy out there, hail and wind cosmetic damage exclusion endorsements may soon be the norm.

Ultimately, as this area of insurance continues to evolve, the best thing you can do for your clients is staying up to date on the latest in insurance news and ensure your clients fully understand what their policy covers.

Learn More About ASI

ASI is one of the largest homeowners insurance carriers in the United States. Through a network of independent agents, the company offers home, condo, renters, dwelling fire, and flood insurance in more than 40 states. Find out more at AmericanStrategic.com.

Sources:
http://www.insurancejournal.com/news/national/2013/03/07/283640.htm