What is 'consequential loss' in property insurance and how is it typically handled?

CONSEQUENTIAL LOSSES: Also called indirect losses or consequential damage. Examples: Food spoilage from covered refrigerator breakdown (sub-limit typically $500); Additional Living Expenses (ALE) after a covered loss makes home uninhabitable — hotel, meals, storage costs while home is repaired; Loss of use of rental property — lost rental income; Business income loss following commercial property damage; COVERAGE: Homeowners policies often include ALE as a separate coverage (typically 20-30% of dwelling limit); Food spoilage may be a sub-limit; Commercial policies include business income and extra expense coverages; ADJUSTER ROLE: Identify all consequential losses when a direct loss is covered; document ALE thoroughly (reasonable and necessary expenses above normal living costs); ALE stops when: home is repaired; insured finds comparable housing; or ALE limit is exhausted.