We have a claim where the client has an HO-3 policy, but had turned it into a rental property 2 years ago. The insured used to live in the home, which is why they were insured under an HO-3. However, they bought a larger home and moved into it a couple of years ago and they never changed the policy over to a DP3. The insured recently filed a claim for a small fire in the kitchen. The fire damage is not big at all, but there is some smell of smoke throughout the home.

 The claims adjuster for the insurer realized fairly quickly that this was a rental property and stated that they had the wrong policy. The adjuster stated that technically they could deny the claim, but that they were going to go ahead and pay to repair the damage from the fire and wipe down the home for the smoke. However, the adjuster did state that they would not be willing to clean the renters belongings of the smoke odor or even to pay to move them around (contents manipulation) while the work was being done to the structure.

 We have several questions: