In which circumstance might coverage be denied based on 'wear and tear'?

Coverage might be denied based on 'wear and tear' when the damage is due to gradual deterioration because insurance policies typically exclude incidents that are deemed a result of everyday use and lack of maintenance over time. Wear and tear reflects the common deterioration that occurs from typical use of property, which is not an insurable event. Insurers expect property owners to maintain their belongings; therefore, damages stemming from this natural decline or gradual degradation fall outside the scope of coverage.

In contrast, damage caused by a covered event typically qualifies for claims. Exceeding the policy limit affects the financial responsibility of the insurer but does not relate to the nature of the damage. Lastly, while lack of maintenance could contribute to a claim denial, it is specifically the gradual deterioration classified under wear and tear that explicitly signifies the reason for denying coverage in this context.