Cosmetic Damage Exclusion-Pro’s and Con’s.

Should You Sign a Cosmetic Damage Exclusion on Your Homeowners

Insurance?

By: Emmerson Reynolds & Ryan Reynolds

 

Roof damage is one of the top concerns for homeowners, especially in areas prone to hail,

wind, or other extreme weather. But what happens when your insurance policy includes

something called a Cosmetic Damage Exclusion (CDE)? Is it worth signing? What exactly does

it mean for your roof and your wallet?

Let’s break it down.

What Is a Cosmetic Damage Exclusion (CDE)?

When you purchase a homeowners insurance policy, you might be offered a Cosmetic Damage

Exclusion if you have a metal or an impact-resistant roof. In simple terms, this clause means

your insurance won’t cover damage that only affects the appearance of your roof, not its

performance.

For example, say a hailstorm leaves your shingles dented or scuffed, but your roof isn’t leaking

and its structural integrity remains intact. If you’ve signed a CDE, your insurance company likely

won’t pay to repair or replace it, because the damage is considered cosmetic.

Pros and Cons

At first glance, this might seem like a sneaky way for insurance companies to avoid paying

claims. But there’s more to it. Let’s take a closer look at why CDEs exist and what the potential

pros and cons of having one in your policy are:

Pros:

Lower Premiums

-This might be a great option if you’re looking to save money upfront because CDEs will

typically reduce your premium.

Highly Durable Roof = No need

-Metal roofs and impact-resistant shingles hold up well against storms. If you trust your roof’s

durability, you might not need cosmetic coverage.

Cons:

Hidden Damages Could be Denied

-What looks like ‘cosmetic’ damage at first might weaken your roof over time. If the insurance company says it’s ‘cosmetic”, you could be stuck paying for repairs without the help of

insurance. In other words, long-term damage can be hard to see at first glance.

Resale Value

-Dents, cracks, and warping that you can see from the front of your home can make your home

look worn down, which can lower its value when you try to sell.

Potential Out-of-Pocket Expenses

-If you do need repairs in the future and they fall under this exclusion, you’ll be paying for them

entirely out of pocket. Many of these repairs may fall below your homeowner’s insurance

deductible means you would be paying them out of pocket.

Should I Still Sign It?

Ask yourself these questions before signing a Cosmetic Damage Exclusion:

– Do I want the lowest possible premium, even if it means more risk?

– How often does my area get severe weather like hail or high winds?

– Would I be okay paying for cosmetic damage repairs myself?

After these questions, if you’re still unsure, talk to your insurance agent. In many cases, keeping

coverage for cosmetic damage can save you thousands in the long run. At Grimes Insurance,

we will always ensure you understand the fine print before signing. Give us a call today.