We're dealing with a loss of use claim under a HO 6 10/00 and are having a dispute with the insured about some of the damages as submitted. This is a vacation condo not rented to others and is about 2.5 hours from their primary residence. Water damage caused the unit to be untenable for approximately 4 months. During this time the insured stayed at vacation property in other coastal areas in other states and is claiming that cost as part of the LOU. There were similar accommodations available in the same area as the condo. Would these trips to destinations so far away qualify for coverage? Would it be reasonable to allow for what it would have cost to stay in a property next door to their condo instead? 

Virginia Subscriber

Additional living expense is designed to keep the insured at his normal standard of living. Additional costs in order to obtain that standard are what are paid. If the insured condo is in Virginia, then coverage for the cost of a similar condo in Virginia is what is covered.  If the insured goes to Florida and the cost of renting condos there is more expensive than those in Virginia the insured is only compensated for what the cost to rent a similar condo in Virginia would have been. Likewise the expense to get to Florida is not covered over what it would have cost for the insured to visit the condo in Virginia.