Damages claims and matching materials

In this blog, we discuss the matching of materials for replacement following a damage claim.

Clauses included in policies

All insurance policies include clauses under one or more of the following headings:
Floor coverings; Textile & fabric awnings; Pairs; Sets; Systems and collections; Reinstatement and replacement; Dye-lots/colours/patterns & textures; Similar styles and materials; Matching of floor and wall coverings.

These clauses intend to clarify that the insurer will not cover undamaged areas or additional expenses due to discontinued or unavailable colour or texture of materials. Examples include, but are not limited to: buildings that may have architectural features and structural materials of particular ornamental or antique character (e.g. marble) that have been discontinued. This includes local carpets, or floor or wall tiles that are no longer available.

Flood damage

In the event of flood damage, it is deemed unreasonable for clients to expect replacement of an entire floor space covering where only a localised area is damaged. If an insurer is unable to source suitable or similar product material, they would be entitled to make a settlement in cash.

Exterior fixtures

As exterior textile and fabric awnings (shade cloth or tarpaulin, or canvas) are continually exposed to the elements, particularly wind and sun, it can be expected that the settlement will be reduced where there may be inherent ageing or visible wear and tear.

Insurer’s prerogative

It should always be the insurer’s intention to fairly and reasonably put the insured client back into the position (cover for financial loss) they were in before the insured loss or damages arose. The insurer may elect to physically re-instate the damaged buildings by making use of their own elected contractors or they may otherwise elect to settle cash in part in full.

The intention of the above clauses is not to disenfranchise claimants but to allow for facilitation of prompt claim payments with a view to preventing drawn-out and protracted settlement disputes.