Winter2024_SSCWN_web
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Around the Wash<br />
The Roof -<br />
Cosmetic Damage Exclusion<br />
The second and more recent endorsement, in<br />
this case it is an exclusion of coverage, that insurance<br />
carriers have begun attaching to new and renewal<br />
policies is the Roof - Cosmetic Damage Exclusion.<br />
Commercial property insurance coverage is<br />
“triggered” by a covered peril (hail, wind, etc.) having<br />
a damaging effect on insured property. This is<br />
generally called “physical damage” by insurers; however,<br />
the term “physical damage” or “damage” is not<br />
specifically defined in most insurance policies. This<br />
means that ANY physical alteration to the property,<br />
no matter how slight, can be considered damage,<br />
thus triggering a claim being paid. To limit coverage<br />
for “non-functional damage”, insurers have begun<br />
to include the “cosmetic damage” exclusion. Cosmetic<br />
damage is usually defined as marring, pitting<br />
or other superficial damage from hail or wind that<br />
alters the appearance of the roof, but does not prohibit<br />
it from functioning as a moisture barrier. What<br />
this means to the wash owner is that if a Roof - Cosmetic<br />
Damage Exclusion is attached to your commercial<br />
property insurance policy and your roof is<br />
damaged by hail…unless your roof is leaking, you<br />
most likely will not be able to file a claim against<br />
your insurer, regardless of how ugly the roof looks.<br />
Three Important Steps<br />
So, the bottom line here is that if you own a<br />
wash in a storm susceptible area, which seems to be<br />
encompassing more and more of the country lately,<br />
that you take the time to review your property policy<br />
closely. If your policy contains an endorsement<br />
for Wind/Hail deductibles or a Roof – Cosmetic<br />
Damage Exclusion take these three steps to properly<br />
manage your coverage.<br />
1. Read your policy – make certain that you<br />
fully understand the deductible placed on your policy.<br />
2. Talk to your agent – make sure your agent<br />
fully explains all the requirements and nuances of<br />
your policy. Ask if there are alternatives available<br />
through your current insurer or other carriers.<br />
3. Be prepared - catastrophes happen. No<br />
matter where you live in the United States, you’re<br />
just a couple of years away from some major catastrophic<br />
event. If your policy has implemented<br />
a Wind/Hail deductible, make sure you have the<br />
money saved up so you’ll be able to pay it when<br />
that inevitable storm strikes.<br />
Dan is licensed in all states (except Alaska &<br />
Hawaii) and has been assisting business owners<br />
protect their operations, assets, customers and<br />
employees for over 25 years. For questions regarding<br />
this article or other insurance matters he can be<br />
reached at carwashinsuranceguru@gmail.com<br />
WHAT THE HAIL?<br />
Hail usually strikes the hardest in the<br />
spring months, but can last throughout<br />
the summer. The largest hailstone recorded<br />
measured in at 8” in diameter, 18.5” in<br />
circumference, and weighed 1.94 pounds<br />
was found on July 23, 2010, near Vivian,<br />
South Dakota, according to Weather<br />
Underground Historian Chris Burt.<br />
The heaviest hail recorded was found<br />
in Gopalganj District, Bangladesh, on<br />
April 14, 1986, and weighed 2.25 pounds<br />
On July 30, 1979, in Fort Collins, Colorado,<br />
a hailstorm, produced pellets the<br />
size of grapefruits.<br />
On April 20-21, 2006, in San Marcos,<br />
Texas, a hailstorm produced hail that<br />
was 3.9 inches in diameter.<br />
On April 14, 1999, in Sydney, Australia,<br />
40,000 vehicles were damaged during a<br />
hailstorm which produced hail that was<br />
3.7 inches in diameter.<br />
8 • WINTER 2024<br />
WINTER 2024 • 9