Is wear and tear covered by insurance?

Is Wear and Tear Covered by Insurance?

Is wear and tear covered by insurance? When it comes to property maintenance and insurance, myths about wear and tear can lead to confusion and costly mistakes.

Let’s set the record straight on some common misconceptions.

What is Wear and Tear?

Wear and Tear refers to the natural and inevitable deterioration of a property and its fixtures resulting from normal use and aging.

Whether it’s the fading paint on your walls, the slightly worn edges of your carpets, or the less-than-perfect finish on kitchen cabinets, wear and tear is a part of property ownership.

Wear and Tear and Insurance: Myth vs Fact

Myth 1: All wear and tear is covered by standard homeowners’ insurance.

Truth: Most homeowners’ insurance policies do not cover damage due to wear and tear.

They are designed to protect against sudden and accidental damage, not the gradual deterioration of property over time.

Myth 2: If I maintain my property well, I won’t have any wear and tear.

Truth: While regular maintenance can significantly reduce the rate of wear and tear, it cannot completely eliminate it.

All properties undergo some degree of wear and tear over time, regardless of maintenance.

Myth 3: Wear and tear claims are easy to get approved.

Truth: Since wear and tear is considered a result of aging and normal use, it is not typically covered by insurance policies.

Claims that are filed for wear and tear often get denied.

Myth 4: Minor wear and tear doesn’t affect property value.

Truth: Even minor signs of wear and tear can affect the overall value of your property.

Keeping your property in good condition is crucial for maintaining its market value.

Myth 5: Wear and tear is the same as accidental damage.

Truth: Wear and tear is the gradual damage that occurs over time through normal use, whereas accidental damage is sudden and unexpected.

These are treated very differently by insurance policies.

Understanding Insurance Coverage for Wear and Tear

When it comes to insurance, understanding the fine print can make all the difference, especially regarding wear and tear coverage.

Here’s what you need to know to ensure your property is adequately protected:

1. The Basics of Wear and Tear in Insurance Policies

Most standard homeowners’ insurance policies do not cover wear and tear because it’s considered a result of the natural aging process of the property.

Insurance typically covers sudden and accidental damage, not gradual deterioration.

2. What to Look Out for in Your Policy

  • Exclusions Section: Carefully review the exclusions section of your policy to understand what is not covered. This section often explicitly mentions wear and tear.
  • Maintenance Clause: Some policies may have a maintenance or care clause that requires homeowners to perform regular maintenance to keep coverage valid.
  • Additional Coverage Options: Look for options to add coverage that might help bridge the gap for older homes or specific concerns related to wear and tear.

3. Special Policies and Endorsements

  • Home Warranty: While not insurance, a home warranty may cover systems and appliances for failures due to wear and tear.
  • Endorsements: Some insurers offer endorsements that add coverage for certain scenarios not covered under the standard policy. Ask about endorsements that might cover aspects of wear and tear.

4. Tips for Policy Review

  • Annual Reviews: Your needs and the details of insurance policies can change. Review your policy annually to ensure it still meets your needs.
  • Understand the Terms: If there’s anything you don’t understand in your policy, don’t hesitate to ask your insurance agent for clarification.
  • Comparison Shop: It’s wise to compare policies from different insurers to find the best coverage for your needs, particularly if you’re concerned about the impacts of wear and tear on your property.

While typical insurance policies might not cover wear and tear, understanding your policy’s specifics, asking the right questions, and exploring additional coverage options can help protect your property and peace of mind.

Have questions about your coverage? Contact us for a free policy review. book a call