January 3, 2017

Currently handling a loss of use claim under a HO 6 Unit Owner's Coverage form and HO 17 32 (10/00) Unit Owners Coverage A. Insured has provided sufficient documentation to proceed with payment for his loss of use; however, insured has also submitted a hotel invoice to consider for spending the night due to his unit not being livable when he went to check on his unit due to the damages. He was not required to go but went to check on his unit. We are already paying him for his unit not being fit to live in. Would he be entitled for the hotel expense as well?

Virginia Subscriber

You have fair rental value if the unit is rented to others or held for rental and is not fit to live in; if the insured had the unit open for rent, then fair rental expenses is appropriate. If the insured lives in the unit and was displaced, then payment for his hotel is available. The insured cannot collect both for his hotel and the fair rental value; if he had the unit for rental and stayed in the area to check on it he was not displaced from his place of residence to maintain his normal standard of living. The insured cannot collect twice for the same thing. Either the unit was held for rental and due to the loss he was unable to rent it out, or he normally resides in the unit and was unable to reside there due to the loss.

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