Here are the facts of the loss:

1. A wind loss occurred and coverage was extended to spot repair vinyl siding. 2. In the process of identifying the existing siding so a repair could be completed, it was discovered that the existing siding has been discontinued and is not functionally compatible with currently available siding. 3. An itel report identified the product, noted a profile size and shape difference, and stated that installers should verify dimensional compatibility before purchasing replacement products. 4. When verifying compatibility, the manufacturer confirmed that the existing siding is not functionally compatible with currently available siding, and stated, "Unfortunately, the older and newer siding types are not interchangeable." "They are different and cannot be mixed."

The insurer's position is that the matching exclusion applies, and only the damaged pieces are covered, as the policy excludes undamaged materials.

The policyholder's position is that the exclusion does not apply when functionally compatible materials are not available to complete a repair. The language of the policy excludes undamaged siding for the purpose of matching existing materials and new material "used to repair" the siding. The policyholder's interpretation is that, "used to repair" indicates that functionally compatible materials are available to complete the repair. For example, siding may be discontinued due to changes in color or surface pattern, but is still functionally compatible if the physical dimensions are the same. In that case, the exclusion would apply.

However, in this case, the issue is repairability. Functional incompatibility due to physical dimension changes make it impossible to complete a proper repair. The insurer's proposed spot repair, attempting to mix two incompatible products, would not constitute a workmanlike repair.

The policyholder's interpretation is that the intent of the exclusion is to exclude the matching of undamaged materials for aesthetic purposes, and that the exclusion does not apply in this case of functional incompatibility.

Your professional interpretation will be greatly appreciated.

Tennessee Subscriber

Your insured is correct. There is a tremendous difference between siding that is simply a different color than the existing siding that has faded due to age, and siding that will not fit together and make a watertight seal on the dwelling, which is what it sounds like you have. If the available siding is not compatible as far as fitting together to make a complete repair, then the insured is owed new siding, even for the undamaged portions. Just how does the insurer propose to repair the property when the siding is not compatible? The property cannot be patched – therefore, all siding must be replaced, and it is a result of the loss and not just that the colors don't match. That is different than being physically unable to use new siding due to size differences.

Tennessee statute requires a uniform appearance – Tenn. Comp. R. & Regs. R. 0780-01-05-.10. When a loss requires replacement of items, and the replacements do not match in quality, color, or size, the insurer shall replace items so as to conform to a reasonably uniform appearance according to the applicable policy provisions. This applies to interior and exterior losses. The insured shall not bear any cost over the applicable deductible, if any. (emphasis added).

The loss should be covered completely.