While the home was being repaired, our insured's wife had to have emergency surgery. Because of the husband's employment, his sister-in-law came to town to take care of the three small children. Obviously the two-bedroom apartment was too small to accommodate her, so she stayed at a local motel.
The insurer has denied payment for the motel room under additional living expense (coverage D). Isn't our insured entitled to a payment from the insurer so that he can maintain his normal standard of living? If the fire had not occurred, the sister would easily have been able to stay in the home.
We would like your opinion on the insurer's responsibility for the sister's motel bill.
New York Subscriber
The homeowners policy promises that additional living expense will be paid so that the insured can maintain his or her normal standard of living. Because your clients have been settled in a two bedroom apartment instead of a four bedroom home, they are not maintaining their normal standard of living.
If the fire had not occurred, your client would have been able to have his sister-in-law visit and live in the home. That is part of their normal standard of living. If the insurer had settled your client in an equivalent dwelling, she would have been able to stay with your client.
However, because the insurance company put your client into a much smaller dwelling, the sister-in-law could not stay with them. Therefore, the expense for her room is payable as additional living expense.
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