The insured submitted a claim for six months loss of rents from August 5 until January 29, which is when repairs were completed. The company offered only one month, representing the actual time repairs were underway.

Is the insured entitled to loss of rents for the time he couldn't repair because of company delay in the adjustment process (as the company did not allow the insured to make repairs prior to the inspection by the builder)? Further, is the insured entitled to loss of rents because of company delay in actually paying the loss (as he could not repair due to lack of funds)? Would the same answer hold true for the commercial property form with special causes of loss?

New York Subscriber

The insured is entitled to loss of rents coverage for the entire period the apartment was not rented, August 5 until January 29. The policy promises such payment “for each month the rented part of the described location is unfit for its normal use.” The apartment in question was “unfit for its normal use”—because of fire—from August 5 until January 29.

Our answer would be the same for form CP 00 30 07 88. That form promises to pay for loss of business income (the rent the insured receives) during the “period of restoration.” Essentially, the period of restoration is defined as the time required for the insured to repair the building “with reasonable speed and similar quality.” The only limitation is that the form won't pay if that time period is extended because of the enforcement of building laws or because the insured must clean up pollutants.