Wear And Tear Exclusion

What Does Wear And Tear Exclusion Mean?

A wear-and-tear exclusion is a clause in an insurance contract that specifies the policy does not cover damage resulting from normal, everyday use. Since all property naturally deteriorates over time, covering such losses would be prohibitively expensive for insurers. Insurance is designed to cover losses caused by unexpected events, not the inevitable effects of regular use. As a result, normal wear and tear is explicitly excluded from coverage.

Insuranceopedia Explains Wear And Tear Exclusion

If insurers did not exclude wear and tear, they would eventually be responsible for replacing or repairing every insured car, house, or other property as it deteriorates. This would require significantly higher premiums to cover these costs. Auto insurance, for instance, is designed to cover unforeseen events like accidents and does not include the replacement of parts that wear out over time, such as filters, hoses, and brake pads. This is one reason some drivers buy car repair insurance or a separate vehicle service contract, since a standard auto policy will not pay for parts that fail from age or normal use.

Roof claims are a common place this exclusion comes up on the homeowners side. Insurers often deny roof replacement claims when the damage looks like gradual aging rather than a sudden event like a windstorm or falling tree.