The most common Extra Expense coverage is via the CP 00 30 10 12 form. This states "Extra Expense means necessary expenses you incur during the "period of restoration" that you would not have incurred if there had been no direct physical loss or damage to property caused by or resulting from a Covered Cause of Loss." The BOP policy requires the Extra Expense to be incurred within a year after the loss.

The key word here is "incur" the cost. My question is whether the expense has to occur during the year after the loss and if it is paid for after the first year. I believe that the insurance should pay if the expense is incurred during the first year, but is paid for afterwards or if it occurs after the first year.

Massachusetts Subscriber