Article suggests changes to the cosmetic damage exclusion


A recent Claims Journal article examines the concept of "aesthetic impairment" as an alternative to the traditional "cosmetic damage" exclusion within commercial property coverage. The aesthetic impairment concept defines the term "damage," and outlines differences between functional and appearance loss. This results in more transparency and clarity in risk retention and coverage. While focused on commercial property in general, this concept may be especially effective for public entity building roofs measured in acres, not square feet.

The article was authored by Marcos A. Mendoza, Assistant Director of Legal and Regulatory Affairs for the Texas Association of School Boards (TASB), and adjunct faculty at the University of Connecticut School of Law.

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