Wear and Tear Exclusion
Contents
Unveiling the Wear and Tear Exclusion in Insurance Policies
Understanding the Nuances of Wear and Tear Exclusions
What Is a Wear and Tear Exclusion?
A wear and tear exclusion is a provision in insurance policies that stipulates coverage does not extend to the normal deterioration of insured objects. This exclusion is crucial as insurance is meant to protect against unforeseen losses rather than inevitable wear and tear.
Understanding the Wear and Tear Exclusion
Wear and tear exclusions are standard across various insurance policies. For instance, auto insurance typically excludes coverage for parts that naturally degrade over time, like brake pads and water pumps. These exclusions absolve insurers from liability arising from a lack of proper maintenance or aging of insured items.
Exclusions Are Specified
Insurance contracts outline specific exclusions that determine coverage eligibility. These exclusions can be extensive and may include wear and tear, poor maintenance, prior damage, or manufacturing defects. Disputes often arise when insurers attribute property damage to preexisting conditions or inadequate maintenance.
When Parties Disagree
Disputes over insurance claims, especially concerning older properties, can lead to legal action for insurance bad faith. Despite property inspections prior to policy issuance, insurers may still contest claims based on wear and tear arguments. Such disagreements underscore the importance of clear policy language and documentation.
Wear and Tear Exclusion and Anti-Concurrent Cause Language
Unlike anti-concurrent cause clauses, wear and tear exclusions do not address concurrent causes of damage. Courts have ruled that when covered and uncovered perils combine to cause a loss, the absence of anti-concurrent cause language may result in the coverage of the entire loss.