Cosmetic Damage Exclusion Stirs Controversy

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Although the insurer mentions in the notice that a premium reduction may be available if the insured has replaced the roof in the past 15 years, it does not offer a premium reduction for reducing coverage for roof damage to an actual cash value adjustment basis.

The fact that we know of one insurer that has introduced this endorsement does not necessarily signal that others will follow suit. Time will tell whether such endorsements become standard or merely optional and used infrequently.

The fact that … one insurer… has introduced this endorsement does not necessarily signal that others will follow suit.


Robert J. Prahl, CPCU

Robert Prahl has more than 30 years of experience in the insurance business, primarily in claims and claims training. He began his career as an adjuster in the New York metropolitan area and eventually became a claims manager and claims training director. He has written extensively on insurance issues, having authored two text books for the Insurance Institute of America and previously served as a columnist for Rough Notes magazine, an insurance trade publication.



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Ronald A. Cuccaro, SPPA


Sheila E. Salvatore

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