​Loss-of-use claim (Fire)

[David Green]

I have a condo that had a fire and the insurance company only paid out the reminder of the current lease.

I am unable to show, lease, or sell the unit while it is being repaired.

Does anyone have any advice on how to convince the insurance company to continue paying loss-of-use?

Any help or advice would be appreciated!

[Timothy W.]

David,

Looking through your facts you presented here I see:

1.  You have a covered loss.  Your policy extends coverage for normal rents resulting from the loss during the period of restoration. 

2.  The period of restoration includes obtaining permits for the restoration.

3.  Vacancy provisions don't kick in unless the property is truly vacant (not unoccupied) for 30 or 60 days, and that is usually only limited to certain types of losses, i.e. vandalism.  I have never seen that provision applied to a fire (12 years, thousands of claims, most in the Chicago area).

4.  The lease was to expire within 30-60 days.  They don't pay for the expense due to the cancellation of a lease so don't demand that, but there's no language on limiting coverage relative to the expiration of a lease.  Demand normal rent for the period of restoration.

Don't speculate or get too creative with adjusters or supervisors.  Stick to facts and policy language and be firm about it.

Tim