Hail Damage and Cosmetic Exclusions

Due to an increase in “cosmetic” claims in recent years, many insurance companies have elected to add endorsements to both homeowner and commercial policies excluding coverage on these types of claims. They do this in order to keep the cost of insurance premiums down.

An endorsement is when an insurance policy is amended in some way. As insurance companies begin to implement these exclusions of coverage, your policy may be amended; an endorsement added to reflect these changes.

Though each insurance company will have its own variation of coverage and exclusions, the basic outline of the endorsement is as follows:

• Exterior surfaces such as roofs, windows, walls, and doors, as well as their included components, are included in the endorsement.
• Damages caused by hail or wind, including dents, scratches, marks, distortions, etc. that changes the appearance of the surface; and
• Does not affect the surface’s functionality in keeping elements from entering your home or business.
• In some cases, the exclusion will not apply if the deductible is equal to or above a certain dollar amount.

Essentially, as long as the integrity of the surface hasn’t been compromised, cosmetic damage will be excluded from coverage on an insurance claim.

Not all insurance companies have opted to do this, however, we strongly recommend you check your homeowner and commercial policies to see if the endorsement has or will be added.