Why Insurance Companies Refuse to Pay for Cosmetic Damage

Insurance companies work tirelessly to minimize the chances of actually paying a claim. They do so in any number of ways, but most often by using dense legal jargon and vague language that limits their obligation in any given circumstance. An insurance policy is designed to protect you and your assets from damage or loss, but your insurance company might not agree that cosmetic damage should be covered.

Cosmetic vs. functional damage

An argument about whether damages are cosmetic or functional might seem like a waste of time, but the issue is very real for those seeking to recover damages. The basic argument on one side is that cosmetic damages don’t affect function, while the counterpoint is that form and function are two sides of the same coin. In certain circumstances, such as roof damage, any damage can ultimately compromise structural function.

The debate is a hot topic in the insurance industry. In fact, the issue is so important that it will be the main topic of discussion at insurance trade association conferences this year. In short, even insurance companies aren’t clear on the distinctions between cosmetic and functional damages. The best way to know if your insurance provider will cover cosmetic damage is to be familiar with your policy.

You pay for insurance- don’t pay for repairs

Cosmetic repairs can be extremely expensive, and insurance companies go to great lengths to avoid paying for them. However, you shouldn’t be left to foot the bill after an accident, especially when you pay for insurance. If you are having difficulty filing a claim, or your claim has been rejected, experienced legal counsel is an excellent option to recover your money. Cosmetic damage is a physical loss, and unless a specific exclusion for cosmetic loss is included in your policy, your insurer’s efforts to not pay could construe bad faith.

If you believe that your insurance company has acted in bad faith, or you have questions about your policy, the experienced Oklahoma insurance dispute attorneys at Stipe Law Firm can evaluate your case and help get you the compensation you deserve. Call (918) 505-7741, visit our office in McAlester, or contact us today for a free consultation. We serve all of southeast Oklahoma.

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