What is cosmetic damage? Cosmetic Damage is defined as marring, pitting, or other superficial damage from a named peril (i.e. HAIL). This type of damage alters the appearance of damage but does not prohibit it from functioning according to some engineers. Roofing materials are designed as a moisture barrier to shed water. Marring, pitting, and other structural damage does not impede the water shedding capability according to some engineers. While some claim that it is still functionally able to shed water as intended, they cannot state that the loss of life or structural integrity of the material may have been compromised.
Most cosmetic waivers are used for metal or tile roofs; however, we are starting to see it more and more for asphalt shingles and other roofing materials. On shingle roofs we see it in two steps. First on the metal that is on the roof such as vents, exhaust caps, flashings, HVAC units, and gutters to name a few things. These items on a typical roof can add to thousands of dollars in additional costs to a property owner. The carrier typically does not include these as an excluded item, but instead calls them cosmetic damage. Second, is the shingles. The carrier is stating that pitting and marring do not affect whether or not the roof will still shed water; unless the shingle fractures, then there is no damage.
The carriers are trying to limit coverage and reduce premiums in an attempt to be more competitive. Property owners today are not educated on the best type of policy. Simply put, the owners are buying on price rather than quality of coverage. Carriers have realized this, reduced the amount of coverage, and excluded more and more items with reduced premiums. In the long run, the carriers are winning with record high profits and dividends and low payouts of claims.
