Although MiniCo has been including a Cosmetic Loss Limitation Endorsement for several months on risks in hail-prone areas, this endorsement will become more common with ISO’s introduction of the Businessowners Form BP 14 81 07 13 (LIMITATIONS ON COVERAGE FOR ROOF SURFACING) effective 07/01/13. The forms are designed for similar intent regarding not paying for cosmetic damage to the roof; however, the ISO form includes windstorm as a peril. The endorsement is basically designed to mitigate losses that are cosmetic in nature and do not impact the integrity of the roof as a barrier to entrance of the elements.
The MiniCo endorsement does generate a credit to locations where the endorsement is attached. This endorsement is currently filed for use in Arkansas, Colorado, Kansas, Missouri, Nebraska, Oklahoma and Texas.
- Includes coverage for cosmetic hail damage to roll-up doors, siding, downspouts, gutters, etc. Only cosmetic damage to metal roofing is excluded.
- Provides coverage for hail damage to metal roofing only when the damage results in the failure of the metal roof covering to perform its intended function of keeping out the elements.
This is an excellent solution for self-storage locations that are located in hail-prone areas and are having difficulty acquiring property coverage specifically because of the hail peril.
ISO also will be introducing Businessowners BP 14 04 07 13 endorsement (WINDSTORM OR HAIL LOSSES TO ROOF SURFACING-ACTUAL CASH VALUE LOSS SETTLEMENT) 07/01/13, which also will be utilized to mitigate windstorm or hail losses to roof surfacing.
Contact your MiniCo underwriter at 800-528-1056 for more information.