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What Constitutes Physical Loss or Damage in a Property Insurance Policy?
Winter 2019
Most property insurance policies require “physical loss or damage” to insured property as a threshold requirement for coverage. In most property damage losses, this requirement is easily met. When, for example, insured property is damaged by fire, water, or wind, there always will be a physical change or structural damage to that property. But when the insured property’s structure is unaltered, at least to the naked eye, and the insured claims the property’s value, usefulness, or functionality has been lost or diminished, questions arise whether coverage is triggered.
Tort Trial & Insurance Practice Law Journal
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