United States District Court holds that "period of restoration" includes time waiting for insurance payment

In my last couple of posts I have written about Vermont Mut. Ins. Co. v. Petit, in which the United States District Court for the District of Massachusetts discussed issues relating to recovery of lost rental value of units after a fire.

The policy provided for lost rental income "for the duration of the reasonable period of time need for [the insured] to reenter business plus any delay attributable to [the insurer's] failure to perform its duties under the policy.

The insurer argued that the restoration period should include only the time "necessary and appropriate to complete the estimates prior to beginning construction." The insureds argued that the restoration period should also include "the entirety of this litigation if payment if not made beforehand" by the insurer, arguing that the typical insureds cannot begin reconstruction until they receive payment from the insurer. The court agreed with the insureds that the period of restoration includes the time up until they receive the settlement from the insurer.