COSMETIC DAMAGE EXCLUSIONS IN HOMEOWNERS POLICIES, IS YOUR POLICY SUBJECT TO THIS LIMITATION?
As a consumer in the market for obtaining a homeowners policy it’s important to check with individual insurance companies to confirm the coverage provided by their policies. However, most companies follow similar standards of protection for homeowners. This is where an independent agent can be extremely beneficial when on the hunt for the right coverage at the right price. Independent agents have access to many different insurance carriers and can help to shop, compare coverages and any possible exclusions that limit coverage amongst many carriers.
The following are perils that are commonly covered in different degrees depending on the type of Home Owners policy purchased.
Some of the disasters commonly excluded from home insurance policies include floods, earthquakes, sinkholes, mudslides, war, nuclear accidents, landslides, mudslides and sinkholes.
In addition, due to the severity of storms in recent years and due to the influx in claims as a result of wind and hail claims a “Cosmetic Damage Exclusion” form has been introduced into the marketplace. The hail and wind exclusion which insurance companies can choose to adopt or not would exclude payments for damage to exterior surfaces, including walls, roofs, doors and windows from hail or wind if the storm event only impacts the appearance and not the function as a barrier of those elements.
Of note the hail and wind exclusion is different from windstorm and wind and hail deductibles that are common in hurricane prone states such as Florida.
In addition, the endorsement enables an insurer to exclude one component or material such as the roof or metal components. It’s important to review your policy carefully and know what the homeowners insurance premium you’re paying for covers and what you as the consumer are willing to accept.
To learn more about this exclusion and the implications it could have on a homeowners policy and damage that was traditionally always covered and if your policy is affected or not please contact one of our personal lines advisors today.
Stacey Elders, CRIS