An insured purchased a motorcycle two years ago with a custom paint job. The paint job had been completed about one year prior to our insured's purchase of the bike. The paint is now bubbling. The insured states it is due to the extremely cold weather. The appraiser who looked at the vehicle said he could see fingerprints under the clear coat, indicating the vehicle was not properly prepped before painting. Is there coverage for the bubbling paint?

Indiana Subscriber

After reviewing your inquiry and the relevant policy/endorsement, it is our opinion that the loss should be covered.

First, there was a direct and accidental loss/damage, and this is what the insuring agreement requires. Direct because there's tangible damage to the vehicle—the bubbling paint—and accidental in that, as far as we know, the insured thought it was a good paint job when he bought it and the shop surely didn't deliberately improperly prep for the paint job.  

As for the wear and tear or mechanical exclusion, if the appraiser is correct in that the improper prepping led to the bubbling, then it is not wear and tear. That exclusion is designed to exclude coverage for gradual damage to the auto that occurs under normal and expected conditions.  The proximate cause of the loss was the improper prepping, and that was neither gradual nor was it normal and expected.

And, because we can find no other exclusion that would apply to prevent coverage, the loss would be covered.  

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