Education

Understanding Insurance Series: Gradual Damage and Wear and Tear

10 July, 2023

While insurance policies cover various types of damage and losses, it’s important to understand the concepts of gradual damage and wear and tear.

Aging and deterioration happen naturally over time. Although there are steps you can take to care for your home, contents and car and extend their durability, gradual damage and wear and tear are the result of ongoing and inevitable processes. For example, water leaks lead to mold growth, foundation cracks due to soil settling, corrosion in plumbing systems, paint fading, carpet fraying or mechanical failure of old appliances.

This decline is expected – as opposed to the sudden and accidental loss we have described in previous chapters.

Insurance is designed to protect against sudden and accidental loss, not for damage that occurs over time. That’s why many insurance policies have specific limits for what causes of general damage would be covered, and how much for.

Gradual damage and wear and tear differ slightly

Wear and tear refer to the deterioration of something over time due to use and age, for example; the wearing out of car parts or electrical components. Whereas gradual damage means damage over a prolonged period due to a specific cause, like a leaky pipe rotting the wood of your home.

What steps can I take to mitigate wear and tear?

  • Regular maintenance:

It’s a good idea to be proactive and consistent at inspecting your home, vehicle and contents to identify and address any potential sources of gradual damage. Upkeep can extend the lifespan of your property and reduce the likelihood of significant deterioration.

Around your home, you should regularly check your water pipes for signs of leak, mildew, mold, or soft spots. These can be a sign of wear around windows or a leaky roof. As for your car, it should have regular servicing. Keep an eye on its oil levels and stay alert for strange noises.

  • Timely repairs:

Regular inspections will help you identify any necessary repairs before the issue worsens. Addressing issues promptly can prevent minor problems from escalating into more extensive damage. Small leaks, cracks, or other signs of wear and tear should be repaired promptly to avoid exacerbation.

  • Record-keeping:

Documenting your maintenance activities, repairs, and improvements can be valuable when lodging insurance claims. Providing evidence of responsible upkeep can support the case for coverage in certain situations.

Understanding gradual damage and wear and tear is essential for protecting your property. Staying informed, engaging in regular maintenance, and promptly addressing issues can greatly mitigate the impact of wear and tear.