Everyone, even the best metal roofing contractor in Corpus Christi TX, loves metal roofs. Whether corrugated or standing seam, using hidden or exposed fasteners, and either tin or aluminum, they're a testament to durability and capability. Unfortunately, it's their sturdy and top-notch performance that makes them a metal roof insurance nightmare.
If you've asked any Corpus Christi TX property owner about damage claims for metal roof insurance, you've heard most insurers tell them to back off if it's only "cosmetic" damage and not actual "functional" damage.
In a nutshell, cosmetic damages are minor damages that do not affect the metal roof's function. On the other hand, functional damages disable the roof or gravely affect its performance. If it sounds unfair to you, we believe so too. Before we jump in, here is a great breakdown by Nachi about the two core concepts.
Mastering Roof Inspections: Hail Damage, Part 2
DEFINING HAIL DAMAGE
Although it may be relatively short, this is one of the most important articles in this series. For insurance purposes, hail damage to roofing-covering materials is defined as either "functional" damage or "cosmetic" damage.
Being able to determine the difference between the two is crucial, and has long been a point of contention between members of the insurance industry and members of the roofing industry, primarily because of ignorance of or disagreement over basic criteria.
Functional Damage
Functional damage is damage which:
- diminishes the ability of a roof to shed water; and/or
- reduces the roof's expected long-term service life.
Functional damage varies with different types of roof-covering materials. Wood roofs will show functional damage differently than asphalt and tile roofs.
Cosmetic Issues
Damage which doesn’t meet the definition of “functional” is considered “cosmetic.”
Cosmetic issues may be 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. Some examples are:
- minor localized granule loss from hailstrikes to asphalt shingles, or
- hail dents in metal vents, gutters and downspouts.
Cosmetic issues also vary with the type of roof-covering material installed. (read full post)
As metal roof contractors that provide installations, replacements and repairs, we often contest cosmetic damages to metal roofs, no matter how minimal, as qualified for damage claims. We've performed countless inspections on hundreds of thousands of residential and commercial metal roofs and minor cosmetic damages lead to huge metal roof problems over time.
In some cases, insurers try to lowball their policyholders by providing a cosmetic remedy service without charge to the latter. However, this is unfair. Fortunately, two legal thoughts from Tennessee Insurance Litigation and Merlin Law Group supports our idea about metal roof insurance claims for cosmetic damages.
Here's the one from Tennessee Insurance Litigation.
When it Comes to Insurance Policies, There is No Difference in Cosmetic Damage and Functional Damage
In the past, I’ve posted a few articles regarding the recent trend of insurers to attempt to deny hail damage claims on the basis that the damage is “cosmetic” rather than “functional.” Most commonly, the issue arises when there are hail dents to a metal roof and the insurance company denies the claim on the basis that the roof still functions and the damage is only aesthetic. In the past several years, I’ve had to deal with this issue several times. This past summer, we finally had an opportunity to get a ruling on this issue from the Davidson County Chancery Court. In that particular case, Westfield Insurance Company insured a hotel against “direct physical loss,” and hail undisputedly dented the hotel’s metal roof. When faced with the issue, Chancellor Russell T. Perkins ruled:
Based on the undisputed facts, the Court is asked by [the insured] to rule, as a matter of law, that the hail dents to the metal mansard roof of the Insured Premises constitute direct physical loss or damage under the subject insurance policy. . . . The Court concludes as a matter of law that if there are hail dents to the metal mansard roofs, no matter whether they are visible from the ground or visible with or without the aid of chalk, then such dents constitute direct physical loss or damage under the insurance policy and therefore constitute a covered claim under the policy. (continued here)
For Merlin Law Group, they consider cosmetic damage as physical or structural damage. When hail hits a roof, it creates a dent. Therefore, the metal roof insurance claim is valid because the roof suffered damage. Here's what they have to say on the matter.
Cosmetic Damage is “Physical Damage” and Recoverable Under a Property Insurance Policy
Yesterday’s post, Physical Damage is Needed to Collect for Loss of Warranty, may lead some to think that property insurance policies require “structural” or a “functional” destruction before coverage is not afforded. This simply is not true. Alterations to the physical appearance of a structure or personal property are covered so long as the cause is a covered peril.
Indeed, this issue does not get raised just by insurance adjusters. My experience is that when insurance defense counsel hire engineers, the engineering report repeatedly notes the lack of “structural” damage to a building. A noted example of this is with roof claims. HAAG engineers often repeat in their reports and at seminars that there is no structural or functional damage to shingles or parts of the roof. The result is insurance company attorneys saying that they are not paying for anything unless there is proof of “structural damage.”
I am going to provide just one example to show how absurd this position is. The FC&S Bulletins discuss the issue and use the same example of vandalism that I usually provide. Interestingly, the question posed involved a roof with cosmetic damage, and I bet the insurance company had a roofing expert say there was no functional or structural damage to the roof:
Direct Physical Loss and Cosmetic Loss
Hail stones have created dents to a copper roof. The section of roofing is located over a second story bay window. It does not appear that the hail has compromised the life span of the roof’s surface or otherwise affected or decreased its useful lifespan.
Our HO policy provides coverage for direct physical loss. If the roof’s integrity was not compromised by the hail stone impact, has a physical loss occurred? (continue reading this post here)
The final takeaway we'd like you to have from this article is: cosmetic and physical damage are one and the same. However, the final word is within your insurance terms. If it states that insurers will only pay for structural damage, then you'll have to stick by their rules. However, if they used physical damages as their term, then you can contest cosmetic damages with your metal roof insurance claim.
If you need a contractor to perform a thorough metal roofing inspection for an accurate insurance claim, don't hesitate to call us at Galvan Builders. We can help you -- contact us today!
Article Source Here: Corpus Christi TX Metal Roof Insurance: Cosmetic and Functional Damage
Galvan Builders Construction Company
4938 Williams Drive,
Corpus Christi TX 78411
361-857-4341
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