Homeowners Policy (HO)Question 306 of 474

Coverage D pays fair rental value instead of additional living expense when:

a.a rented part of the home is unfit to use
b.the loss comes from a peril that is excluded
c.the insured picks the larger of two amounts
d.the insured's own family moves to a motel

Explanation

Loss of use has two halves: additional living expense keeps the insured's own household at its normal standard of living, while fair rental value replaces the rent lost on a portion of the premises held for rental, less any expenses that stop. The motel answer describes the additional living expense side, and neither half responds when the underlying peril is excluded.

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