May 30, 2012

 Under additional living expense, the homeowners policy says “If a loss covered under this section makes that part of the residence premises where you reside unfit to live in, we cover any reasonable increase in living expense incurred by you so that your household can maintain its normal standard of living.”

The insured lives in a small resort town and uses a golf cart as a mode of transportation to get to work. The entire residence burned up as well as the golf cart. We have concluded the golf cart is not covered for physical damage. Under ALE, we are covering the rental of a condo two miles farther away from the insured's work than usual. The question is, is the cost of the rental of a golf cart, even though the original golf cart is not covered property under our policy, an allowable expense under the ALE coverage as well as the increased cost to operate it from the two mile farther distance?