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 carpet in a bedroom which was treated as a black water situation and the carpet and pad 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 very 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)?