Do simple repairs trigger additional living expense coverage?

Coverage Q&A: The insured will be unable to use his stove due to a gas leak. Does this mean the premise is unfit to live in?

Additional living expense coverage is broad in its terms; however, a premise must be unfit to live in in order for coverage to be available. (Photo: Shutterstock)

Every claim is different, and some insurance policies can be difficult to interpret for unique situations. FC&S Expert Coverage Interpretation, the recognized authority on insurance coverage interpretation and analysis for the P&C industry, makes it simple to find credible answers to your complicated coverage questions. Analysis brought to you by our FC&S experts. 

Editor’s Note: This week’s question is unique: A utility company advised residents of a building that they may be able to file an insurance claim for additional living expenses, or similar, due to a utility issue impacting kitchen appliances. However, does this issue make the premises unfit to live in and would require the insured to relocate until repairs are completed?

Question: Our insured received an email from his residence building stating that an inspector detected a gas leak that could not be repaired, and therefore, the gas system for the entire building had to be shut down. The repairs needed impact every unit and require each apartment’s stove to be pulled away from the wall so piping can be inspected. The building’s manager said it may take many months (in the range of 3–9 months) to complete.

The email also said: “Residents should immediately notify their insurance carrier about the situation. Depending on your homeowners/renters policy, food reimbursement is a possibility, so please keep your receipts. Management has notified the Co-op’s insurance carrier, and we will seek resident reimbursement if possible.” 

Although the email says that our insured could have coverage under his homeowners insurance policy, we question under what sections — civil authority as well as additional living expenses? What are your thoughts?  

— New York Subscriber

Analysis: Additional living expense coverage is one of the broadest coverages found in an insurance policy. It provides for expenses above and beyond the insured’s daily expenses when there has been a loss that makes a residence unfit to live in. If the insured is unable to use the bathroom, cook or inhabit the dwelling, the premises can be deemed not fit to live in. However, there must be a covered cause of loss.

Answer: To learn the answer to this week’s coverage Q&A, please log into your FC&S Expert Coverage Interpretation account.

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