Property insurance contracts often contain provisions requiring insureds to “incur” costs before insurance companies issue payments. For example, “ordinance or law” provisions provide “you may use up to 25% of the limit of liability that applies . . . for the increased costs you incur due to the enforcement of any ordinance or law,” and “reasonable emergency measures” provisions provide “we will pay up to $3,000 for the reasonable costs incurred by you for necessary measures taken solely to protect covered property . . . from further damage.”
Some policies contain “supplemental claims” provisions, providing, “a supplemental claim means a claim for additional loss o