Ouch. That is plain wrong. True the seal is not covered due to it being worn but the resulting damage is covered under the policy. Same thing if your window regulator broke and the window was stuck down due to a rain storm. The resulting damage is covered but the regulator is on you. I had a 1986 Mercedes with 300K miles on it and when the heater core failed, Progressive paid for full dash removal to clean up the coolant. I paid $86 for a new heater core that was easy to install after they paid to remove the dash.