Our insured had a water loss in a condo under a dwelling fire policy on 7/18/14. The carrier has paid two months of fair rental value but will not pay anymore as they contend the AOAO carrier has delayed on the estimate and repairs. The wording of the DP policy states that “payment will be for the shortest time required to repair or replace that part of the described location rented or held for rent.” The condo is still not fit to live in, and the insured awaits the estimate and payment to initiate repairs. We are pushing the AOAO carrier, but the insured is caught in the middle and is asking for additional FRV payment. Do you feel the insured may be entitled to additional payments?

Hawaii Subscriber

Indeed, if the property has not been repaired or replaced, the insured is entitled to payment for fair rental value until it is, as per the policy language. The insured has no control over the other company, and if the carrier wants to hurry them along it can, but the insured should not suffer for something it has no control over. Without an estimate the amount of time to repair cannot be determined, so the carrier has no basis for cutting off the payments.