Homeowners Policy (HO)Question 310 of 474
A family displaced by a covered fire pays $2,600 a month for a hotel while their normal monthly living cost is $1,700. Additional living expense pays about:
a.$4,300 a month, the two added
b.$900 a month, the rise in cost
c.$1,700 a month, the usual cost
d.$2,600 a month, the hotel bill
Explanation
Additional living expense reimburses the increase in living costs needed to keep the household at its normal standard, so $2,600 minus $1,700 leaves $900 a month. Paying the whole hotel bill would hand the family the grocery and utility money they were already spending anyway, which is more than indemnity allows.
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