Matching is a complex issue that arises in property insurance claims, often leaving policyholders uncertain about the extent of coverage they are entitled to. For example, if after a hail storm, your roof, siding, windows, air conditioner or something else is damaged and the existing material is no longer manufactured, what is a policyholder to do? Should the entire property’s roof or siding be replaced or is it acceptable for the insurance company to only repair the damage with “material of like kind and quality” or with “similar material” under a full replacement cost insurance policy? This blog post delves into the challenging subject of matching statutes and provides insights into Texas and other state laws on handling such situations.
Understanding Matching Statutes in Property Insurance Claims:
Matching statutes come into play when a specific part of a structure, such as siding, is damaged, and the insurance company no longer carries the exact type of material. The question arises: Should the insurance company replace the entire siding or only repair it with a similar material? The answer depends on the applicable state laws and the terms of the insurance policy.
What is “Line of Sight?”
The concept of indemnification governs your payout, which involves restoring damaged items or structures to their pre-loss condition. Regarding repairs, line of sight dictates that everything within the adjuster’s visual field should have a consistent appearance. For example, if there are cracked white tiles within the line of sight, they should be replaced with identical white tiles.
However, complications arise when contractors cannot find matching materials to restore the item or structure to its original condition. This challenge is particularly evident with historic homes or antique items. If suitable replacements cannot be found, the line of sight rule requires the entire area within the line of sight to be replaced.
Scope of Line of Sight
Line of sight applies to both the interior and exterior of your home or business. Therefore, if damage to your roof causes internal damage, such as dents and scratches on your hardwood floors, line of sight coverage may encompass repairs for both areas. Line of sight extends to:
- Roofs
- Floors
- Exterior cladding
- Siding and brickwork
- Internal dividers
- Paint, trim, molding, and cabinets
- Counters, carpeting, and furniture
Most Common Line of Sight Coverage Repairs
The majority of commercial, multifamily and homeowner insurance claims stem from several distinct causes, including wind damage, hail, water damage, fire, lightning, and theft. As a result, roofs, floors, and walls are the most frequently repaired areas covered by line of sight provisions. Finding matching supplies for these repairs is typically straightforward, except for obsolete or discontinued products. However, when it comes to furniture and other unique home structures, sourcing compatible materials can be more challenging.
Is Compatibility Required?
When your property suffers damage, your insurance company may be obligated to restore or replace the affected parts with matching materials. This ensures that the building regains its original condition and maintains a uniform appearance. However, achieving perfect compatibility between old and new materials presents a complex challenge. Insured parties and insurance companies often disagree on whether an entire area of damaged property should be replaced to match the rest. Furthermore, manufacturer instructions on whether certain products cannot be mixed or pre-existing materials touching new materials can be helpful in supporting a policyholder’s position for their claim.
Under some insurance policies, the insurer guarantees replacements of “similar kind and quality.” This clause allows them to replace damaged structures or objects with alternatives of comparable quality and composition. However, it does not guarantee a seamless aesthetic match with your old property.
By understanding the concept of line of sight in insurance and its implications for claims and coverage, you can navigate the process more effectively. Consider the scope of line of sight and the challenges associated with finding compatible materials when seeking repairs for your home.
Texas Law on Matching Statutes:
Board Certified attorney Shannon Loyd explains it like this, “when it comes to matching in Texas, there is no law that allows for the recovery of matching building material.”
Navigating Matching Statutes by State:
To explore the matching statutes for each state and gain a comprehensive understanding of how different jurisdictions approach this issue, you can refer to the provided link. It offers valuable insights into the legal requirements and guidelines applicable in various regions.
Get Answers to Your Questions About Texas Matching Statutes:
If you have specific questions or concerns regarding the matching statutes in Texas, our team of experts is here to assist you. Contact us today to receive personalized guidance and clarification tailored to your unique situation.
Conclusion:
Matching statutes in property insurance claims can pose significant challenges for policyholders seeking to resolve damages effectively. Understanding the specific laws governing matching requirements is crucial for determining whether full replacements or repairs with similar materials are appropriate. In Texas, the parol evidence rule allows for the use of extrinsic evidence when a contract is ambiguous. Stay informed about the matching statutes in your state and consult with insurance professionals to ensure you receive the coverage you deserve.
To read the Matching Statues for each state, click HERE.
If you have questions regarding Texas or another state’s Matching Statutes get a complimentary, no obligation, no pressure claim consultation by one of Insurance Claim Recovery Support’s licensed Public Insurance Adjusters> Contact Us Today
