What type of expenses are NOT covered under extra expense insurance?

Extra expense insurance is designed to cover costs that a business incurs to continue its operations following a covered loss, such as damage from a fire or other disasters. This type of insurance helps businesses to reduce their losses during the period of restoration.

The specific context of mortgage payments is important here. Mortgage payments are considered a fixed expense and are not directly associated with the additional costs incurred to maintain operations during a disruption. These payments remain unchanged regardless of business activity; therefore, they do not fit the definition of extra expenses, which are incurred specifically to mitigate the impact of the interruption and maintain the operational capabilities of a business.

In contrast, the other options — utilities for a temporary location, rental of temporary equipment, and wages for employees during downtime — are expenses directly related to keeping the business operational after experiencing a loss. Utilities for the temporary location are necessary to sustain operations, rental of equipment is often essential for continuity, and covering wages helps retain employees during the downtime, showing a clear association with extra expenses as defined by the coverage.