“Extra” is the E that largely stands for the concept of expediting costs which are incurred to reduce the ultimate loss. “These are out-of-the-ordinary expenses.”1 They are differentiated from the normal expenses to repair and replace damaged property covered under the property insurance policy. These expediting costs usually fall into three categories:
- Those that speed up the return to normal operations;
- Those that continue operations during the period of interruption but at a higher than normal cost;
- Those incurred, after operations are resumed, to refill inventory.