Additional Living Expenses insurance coverage is generally meant to pay for the shortest time required to repair or replace damage from a covered loss such a house fire. (Shutterstock) Additional Living Expenses insurance coverage is generally meant to pay for the shortest time required to repair or replace damage from a covered loss. (Shutterstock)

Analysis brought to you by the experts at FC&S Online, the recognized authority on insurance coverage interpretation and analysis for the P&C industry. To find out more — or to have YOUR coverage question answered — visit the National Underwriter website, or contact the editors via Twitter: @FCSbulletins.

Question: My clients incurred a fire at their home, which was under contract for sale.  The date of closing was scheduled for March 22, 2018, and the fire occurred on March, 17, 2018.  As a result of the loss, they incurred extensive fire and water damage throughout the majority of the building. The building will not be able to be put up for resale or be occupied for at least 8 months. The insured has already purchased another home in Florida, moved and has an additional mortgage and normal living costs on the home in Florida.  With the home sale now cancelled, the insured is forced to incur additional expenses that will be above their normal standard of living having to pay for the cost of two homes for the next 8 months, or until the home is repaired and sold again.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Agency Management
Coverage & Policy Issues
Personal Lines
Catastrophe & Restoration
Education & Training
Personal Lines