Additional living expense coverage is one of those broad coverages that can bedevil adjusters, agents, and insureds alike. Just what exactly makes a residence unfit to live in?
The phrase is not defined in the policy, which leaves it open to interpretation. An adjuster may have a very different interpretation from the insured of what makes a house unfit to live in. Since there is no definition on the policy, we go to the dictionary. Merriam Webster Online defines fit as “acceptable from a particular point of view, or put into a suitable state.” That's a beginning, although still vague. Let's look at a few situations and see what might cause insureds to relocate.
The obvious situations are easy; a missing roof or wall obviously would require relocation. But what about lack of air conditioning? Remember that fit is defined as acceptable from a particular point of view. If an insured keeps the air conditioning at a chilly 68 degrees, she may be exceedingly uncomfortable with the windows open when the outside temperature is 78 degrees. Another insured who keeps the temperature at 80 degrees may be perfectly fine.
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