Additional living expenses paid

Following significant water damage to their residence, a consumer was forced to temporarily relocate while repairs were completed. During the claims process, a miscommunication between the insurer and its preferred contractor regarding the scope of the restoration work resulted in the consumer being denied coverage for substitute accommodation expenses. The insurer took the position that the home remained sufficiently habitable and that additional living expenses were not warranted.

The consumer subsequently raised concerns and provided documentation demonstrating that the affected area of the residence could not reasonably be occupied while repairs were underway. After reviewing the evidence submitted by the consumer and engaging with the insurer to clarify the circumstances surrounding the claim, it was determined that the information initially relied upon by the insurer was incomplete. As a result, the insurer acknowledged that the consumer should have been eligible for additional living expenses for the period during which the restoration work rendered that portion of the residence uninhabitable. The claim was reassessed, and the insurer agreed to provide coverage for the substitute accommodation expenses for the duration of the repairs.