Additional Living Expenses insurance coverage is generally meant to pay for the shortest time required to repair or replace damage from a covered loss such a house fire. (Shutterstock) Additional Living Expenses insurance coverage is generally meant to pay for the shortest time required to repair or replace damage from a covered loss. (Shutterstock)

Analysis brought to you by the experts at FC&S Online, the recognized authority on insurance coverage interpretation and analysis for the P&C industry. To find out more — or to have YOUR coverage question answered — visit the National Underwriter website, or contact the editors via Twitter: @FCSbulletins.

Question: My clients incurred a fire at their home, which was under contract for sale.  The date of closing was scheduled for March 22, 2018, and the fire occurred on March, 17, 2018.  As a result of the loss, they incurred extensive fire and water damage throughout the majority of the building. The building will not be able to be put up for resale or be occupied for at least 8 months. The insured has already purchased another home in Florida, moved and has an additional mortgage and normal living costs on the home in Florida.  With the home sale now cancelled, the insured is forced to incur additional expenses that will be above their normal standard of living having to pay for the cost of two homes for the next 8 months, or until the home is repaired and sold again.

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