Maintenance vs. Insurable Events: Clearing Up the Confusion

Many property owners can think that their insurance policy covers every issue that arises with their building, equipment, or contents. Unfortunately, that assumption can lead to disappointment when a claim is denied. The truth is, there’s a big difference between maintenance issues and insurable events, and understanding that difference can save property owners significant time, money, and stress.

This article explains what sets these two categories apart, why insurers make this distinction, and how to avoid costly misunderstandings when protecting your property.

Understanding What Counts as Maintenance

Maintenance refers to the routine care and minor repairs that keep a property in good condition. These tasks are part of normal ownership responsibilities, similar to servicing a car to keep it running efficiently.

Examples of maintenance activities include:

• Repainting walls or exterior surfaces to prevent deterioration.
• Servicing or cleaning air conditioning systems to maintain performance.
• Clearing gutters and downpipes to prevent water overflow.
• Replacing seals, washers, and fittings as they wear out.

These tasks prevent gradual damage, extend asset life, and maintain value. However, they are the owner’s responsibility – not the insurer’s.

Most property and commercial insurance policies exclude losses caused by wear and tear, gradual deterioration, rust, corrosion, or lack of upkeep. From an insurer’s perspective, maintenance prevents foreseeable issues, whereas insurance responds to sudden, unforeseen events.

What Makes an Event “Insurable”?

An insurable event is typically sudden, accidental, and unexpected. It’s the kind of event you couldn’t have reasonably anticipated or prevented through routine maintenance.

For example:

• A severe storm damages a roof or breaks windows.
• A fire destroys part of a building or equipment.
• A thief breaks in and steals valuable tools or inventory.
• A burst pipe causes extensive water damage overnight.

Insurance exists to help you recover from these kinds of incidents – those outside your control. In contrast, ongoing maintenance issues like aging roofs, worn carpets, or rusting pipes are predictable and avoidable with proper care.

Clearing Up Common Misconceptions

Misunderstandings about what insurance covers are incredibly common. Here’s how to approach some of the most frequent ones:

• “My roof is leaking, so insurance will pay for a new one.”
  Not necessarily. If the leak is caused by old age, lack of sealant, or neglected maintenance, it’s not covered. However, if a storm or falling debris caused sudden damage, that’s usually an insurable event
• “Rust or corrosion on my pipes should be included.”
  Rust forms gradually through exposure and lack of maintenance. Because it’s not sudden or accidental, it falls under maintenance responsibilities, not insurance coverage.
• “My policy covers everything, right?”
  Every insurance policy includes exclusions for wear and tear, mechanical breakdown, or inadequate upkeep. Always read your policy wording carefully, or better yet, discuss it with your broker.

Why the Difference Matters

Understanding the boundary between maintenance and insured events helps prevent unpleasant surprises during a claim. If maintenance issues are left unchecked, they can turn into major problems, often ones insurance will not pay for.

For example, failing to clean gutters might lead to water pooling and slowly seeping into walls. Over time, that moisture could cause rot or mold, both of which are considered maintenance-related. If that same wall were suddenly damaged by a storm or a burst pipe, however, the claim would likely be valid.

Staying on top of upkeep protects your assets, reduces safety risks, and helps ensure your insurance performs as intended covering genuine, unforeseen losses.

Smart Maintenance Practices for Property Owners

To get the best value from your insurance while keeping your property in top condition:

1. Schedule regular inspections.
   Conduct seasonal or annual checks of roofs, gutters, plumbing, and electrical systems.
2. Keep detailed records.
   Save receipts, service reports, and photos of upkeep. These records demonstrate due diligence if a claim ever arises.
3. Act quickly on minor issues.
   Fix leaks, cracks, or damage early before they escalate. Insurers are more likely to view your claim favourably when you’ve maintained the property responsibly.
4. Understand your policy exclusions.
   Each insurance provider structures coverage differently. Review exclusions with your Dudgeon Berry Insurance Group broker to avoid unwelcome surprises.
5. Ask questions before assuming.
   Unsure whether an event is insurable? Contact Dudgeon Berry Insurance Group for expert guidance. An experienced broker can help clarify what your policy covers and recommend maintenance strategies that complement your insurance protection.

The Bottom Line

Insurance is a safeguard against the unpredictable, not a safety net for neglect. By understanding where maintenance ends and insurable events begin, property owners can maintain their assets more effectively and ensure claims proceed smoothly when genuine accidents happen.

Dudgeon Berry Insurance Group is committed to helping clients navigate this distinction with confidence. With the right combination of proactive maintenance and tailored insurance coverage, you can protect your property, avoid unnecessary costs, and gain peace of mind knowing you’re covered when it truly counts.