ARI Blog: Article

What is the wear and tear exclusion in insurance?


Wear and tear is a common exclusion in your property and auto insurance policies. Understanding what it excludes can help you in the event of a claim.

What does Wear and Tear Exclusion mean?

An insurance contract's wear and tear exclusion provision state that the policy does not cover degradation from everyday, regular use. Insurance only covers losses due to unexpected events. Because every property piece deteriorates over time, insurers would be too expensive to cover such losses. faiurNormal wear and tear cannot be avoided, and therefore, insurance policies do not hide it.


If insurers did not exclude wear and tear, they would essentially have to eventually pay for replacement or repairs to every building, tool, and piece of office equipment they insure. This would mean dramatically raising the premiums to pay for these expenses. For example, auto insurance only covers unforeseen events, such as accidents. It does not cover replacements of car parts that wear down over time, such as filters, hoses, and brake pads.

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