HAIL DAMAGE TO ROOF SHINGLES: LOSS OF INTEGRITY OR FUNCTIONALITY V. COSMETIC DAMAGE
https://sites.google.com/site/metropolitanforensics/loss-of-integrity-or-functionality-v-cosmetic-damage
https://sites.google.com/site/metropolitanforensics/loss-of-integrity-or-functionality-v-cosmetic-damage
Many
insureds have been complaining because the insurance carrier will not cover a
certain hail or wind damage on the basis that it was cosmetic in nature. Because this is a recurring issue, this blog
provides a very brief explanation of the cosmetic and the functional damage to
building components.
Figure
1: Hail damaged dwelling
What
standard applies?
The standard the carrier is
permitted to apply is based on the terms of the contractual agreement between
the parties, i.e.,
the insurance policy. If the
policyholder paid a premium for direct physical loss to his or her structure,
then cosmetic damage is covered and the carrier must meet its obligation to
indemnify the insured and restore the property to its pre-loss condition.
What has Changed?
Property and casualty insurance
companies, especially smaller regional companies that insure homes in areas
prone to storms, have been hit hard by storm losses over the past decade. As an alternative to raising premiums on
everyone, the American Association of Insurance Services (AAIS), an
organization that develops policy forms used by more than 700 property and
casualty insurance companies, recently created a "Cosmetic Damage
Exclusion" for home insurance policies.
To compensate for the lack of coverage for cosmetic storm damage,
insurance companies give a credit to reduce the premium on the hail and wind
damage portion of the policy.
What is Cosmetic and what is Functional Damage?
The big problem for insureds is
determining what constitutes cosmetic damage.
Cosmetic Damage is damage which doesn’t meet the
definition of “functional” and
therefore is considered “cosmetic.” Cosmetic damages may include discoloration or
damage which doesn’t affect the lifespan of the roofing material or reduce its
ability to shed water. Cosmetic damage
is that which only affects the appearance of a material, or affects its
functionality to only a minor degree. On
the other hand, functional damage
is damage which diminishes the ability of a roof to shed water and/or reduces
the roof’s or other building component’s expected long-term service life.
As a focused illustration,
functional hail damage occurs when the shingle mat is bruised or fractured. Cosmetic impact marks occur when the granular
surface of the exposed shingle tab is “scuffed”, leaving the underlying asphalt
and mat physically undamaged. Granule
loss is not considered functional damage.
In general terms, functional impact damage becomes more prevalent when
hail size begins to approach 1-inch or more in diameter.
Photo 2: Comparison between hail
damages
Metropolitan Engineering,
Consulting & Forensics (MECF)
Providing Competent, Expert
and Objective Investigative Engineering and Consulting Services
We
know you need to process damage claims quickly and knowing the facts is now
faster than ever – within 24 hours of site visit. Our Pegasos Forensic Investigation Services
(PFIS) feature:
·
Expert
Forensic Investigators on-site
·
Readable,
Conclusive Reports
·
Fixed-Prices
starting at $499 per chimney or roof inspection (volume discounts are also
available)
·
10-State
Coverage Area
P.O. Box 520
Tenafly, NJ 07670-0520
Tel.: (973) 897-8162
Fax: (973) 810-0440
E-mail: metroforensics@gmail.com
