As summer storms sweep across the country, commercial property owners are increasingly encountering a frustrating hurdle in their insurance claims: the "Cosmetic Damage" exclusion. This relatively new tactic used by insurance companies can leave you with thousands of dollars in repair costs for damage that the insurer claims is "just for looks." At The Voss Law Firm, P.C., we know that in the world of commercial property, "cosmetic" damage is often a precursor to functional failure.
What is a Cosmetic Damage Exclusion?
A cosmetic damage exclusion typically states that the insurer will not pay for damage to exterior surfaces (like metal roofs, siding, or HVAC units) that "only" affects the appearance of the item but does not impair its "functional" purpose of keeping out water or wind.
Why This is Dangerous for Commercial Property Owners
The problem with this exclusion is that it is highly subjective. What an insurance adjuster calls "cosmetic" can actually be significant structural or functional damage:
- Metal Roofs: Hail dents on a metal roof can compromise the protective coating, leading to premature rust and corrosion. Over time, these "cosmetic" dents can become leaks.
- HVAC Units: Dents in the cooling fins of an HVAC unit can restrict airflow, causing the unit to work harder, consume more energy, and eventually fail.
- Window Frames: Scratches or minor dents in window frames can compromise the seal, leading to air and water infiltration.
How Insurers Use This to Their Advantage
Insurers often use "cosmetic" arguments to avoid paying for the replacement of expensive items. They may offer a small "appearance allowance" instead of the full cost of replacement. If your property is a high-end commercial building or a retail space where appearance is critical to your brand and tenant satisfaction, "cosmetic" damage is a very real financial loss.
Fighting Back with The Voss Law Firm
At The Voss Law Firm, P.C., we don't accept the insurer's definition of "cosmetic." We work with engineering experts who can demonstrate how "aesthetic" damage affects the long-term integrity and value of your property. We challenge the language of these exclusions and hold insurers to their duty to provide the coverage you paid for.
If your summer storm claim has been denied or underpaid due to a "cosmetic damage" argument, don't give up. Contact us today for a free evaluation of your claim and let us help you protect your investment.
