What is the 'normal wear and tear' exclusion in an insurance policy?

The 'normal wear and tear' exclusion in an insurance policy refers specifically to the gradual deterioration of property over time due to regular usage and the impacts of aging. This exclusion is important because insurers aim to protect against unexpected, sudden damages or losses caused by external factors rather than the routine decline of a property that occurs as a result of its ordinary use.

By including this exclusion, insurance policies clarify that they will not cover repairs or replacements that arise simply because an item naturally wears out or diminishes in function. For example, if a roof becomes less effective due to years of exposure to the elements, this would typically fall under normal wear and tear, and a claim would not be accepted for the resulting damage. This ensures that coverage is focused on unanticipated damages while managing the overall risk for insurers.

Therefore, the inclusion of the 'normal wear and tear' exclusion helps set clear boundaries on what is insured and protects against claims that arise from foreseeable degradation rather than accidental or unforeseen incidents.