Our insured has an ISO HO 3 policy, 1991 edition, and recently suffered a fire loss. Coverage for her home and contents is not at issue; however, she has had to relocate to a motel until restoration of her home is complete. Prior to the loss, she stored some of her personal property in half of her two-car garage. Because of the fire, she can no longer use this space until repairs have been completed.

The insurance company is questioning two items under additional living expense—the cost to rent a storage space, and the cost to dry clean the clothing she took with her.

We think this is additional living expense, and should be covered. What is your opinion?

Ohio Subscriber

Quoting from the HO 3, “additional living expense (means) any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living.” Further, the policy does not state exactly what “living expense” is; it does, however, clearly state it is the insured's normal standard of living that is to be maintained. Therefore, within that framework, many expenses are allowable and justifiable.

The insured's “normal standard of living” included a large storage space, so the extra expense of providing this is covered. If many of the insured's clothes were damaged by a covered peril, and the few clothes remaining must be cleaned more than usual to make them wearable, then this expense is indeed additional living expense, assuming her normal standard of living is to wear clean clothes.

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