Our HO-3 insureds suffered a total fire loss. The policy limits for the dwelling and personal property were exhausted.

Since the fire, the insureds have been living in a rented apartment while their home is being rebuilt. During this time, they have been replacing items that were destroyed in the fire. They are now requesting payment for the expense of moving those items out of the apartment back into the rebuilt home.

We would consider this payment to be part of coverage C, but as we said that limit is exhausted. The insureds have hired a public adjuster, who is seeking payment under coverage D, additional living expense.

Are these moving expenses covered as contents or additional living expense?

New York Subscriber

The expense for your insureds to move out of their rented apartment back to their home is payable under coverage D, additional living expense. The policy promises to pay any increase in the insureds' expenses so that they can “maintain [their] normal standard of living.” This is a very broad promise.

 Had it not been for the fire, they would not have been forced to move. Their normal standard of living includes living in (and, in this case, returning to) their home.