Effective 7-1-19, the Obsolescence, Age, Diminished Value, Fading, Wear and Tear Limitation (HMIC 446 07-19) will be added to all policies (renewal and new business).

Some background:

The Insurance Code of the State of Illinois and our Insurance Policies do not require matching. For example, if the siding or roof on a dwelling has physical damage caused by a covered peril on one side, we are not required to replace the other sides that were not physically damaged by a covered peril. Matching, fading, obsolescence, age, and wear and tear issues are not considered direct physical damage caused by a covered peril under the Code or the Policy. This is the way we have adjusted and settled claims for many years.

Recently, there has been some movement in the court system to require matching, etc. However, the Code and our Policies have not changed. In an attempt to make this clear to our insured, we have decided to add this Endorsement to all policies. This Endorsement does not change the way we have been adjusting and settling claims. It just puts it in writing and makes it a part of the policy to make our intent clear to the insured. Without this Endorsement, there is the possibility the courts could interpret the policy differently.