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Question: I am an adjuster dealing with an HO3 special form policy. A water damage claim was submitted by a policyholder. A built-in salt-water aquarium leaked water onto the carpet in a bedroom, which was treated as a black-water situation, and the carpet and pad were replaced. The leak was caused by an external pump that burned up and caused an overflow (wear and tear of the pump).
The fish were removed and taken to a specialty fish and aquarium store where they are being taken care of. The policyholder has made us aware that there is a significant bill for the storage of the fish.
My first instinct is that there is no coverage for animals, birds and fish per the standard exclusion under Coverage C Personal Property. The insured is making claim under Coverage D Loss of Use, however.
This does not appear to be a loss that would make the home unlivable for the insureds themselves but definitely for the fish. Is the proximate cause of the need to relocate the fish due to wear and tear or water damage? And, is Coverage D triggered first by the insured and then secondarily allowed to animals, birds or fish (as in a large loss where boarding of animals is handled as part of additional living expense)?
— Idaho Subscriber
Answer: You have a very interesting scenario. The fish themselves haven't been injured, but their home has suffered damage. Even if the fish had been injured you are correct in that the exclusion for animals, bird, or fish applies.
Additional living expenses (ALE) applies to the part of the residence premises where you, the insured, reside and that area is no longer fit to live in. The fish aren't insureds, and it doesn't sound like the insured is living in the fish tank. Therefore there's no ALE coverage.
Question: When a loss causes a home to be uninhabitable for a period of time, would we be required to board the insured dogs under an H03 policy? Animals are excluded under coverage C, and the ALE says we pay any increases in living expenses you incur so that your household can maintain its normal living standard.
It does not appear this would be covered under ALE. If it were covered, it would seem more of a coverage C claim, for example, when the property is stored while repairs are made (animals are property). But again, they are excluded under coverage C.
— Arizona Subscriber
Answer: The animals are not damaged in the loss; therefore they are not a coverage C item. The insured's standard of living includes living with pets; if you can't relocate the insured into a location that allows the insured to bring his pets, then you need to board the pets where the insured would board them if he left home.
ALE is broad coverage, and the insured's standard of living includes many things, including food, drinks, pets and access to swimming pools.
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