Wear and Tear Exclusion
- A clause in an insurance contract that excludes the insurer from paying for damages to the insured asset resulting from expected wear and tear. Because wear and tear is seen as an inevitability, and insurance is generally designed to cover unforeseen events, an insurer will not cover damages resulting from wear and tear.
depreciation clause, devaluation due to use, normal use exclusion, wear and tear discharge
Related Terms and Acronyms
- Insurance Claim — Definition,
- An application for benefits made by an insurance policyholder after an insured event.
- Insurance Policy — Definition,
- A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
- Property Insurance — Definition,
- Insurance that provides coverage for damages to property from a number of perils.
- Survival Analysis — Definition,
- A statistical analysis of how likely someone or something will survive to a set date.