A homeowner suffered a fire to their home. They live in the desert. They want to rent a property away from the desert because of the summer heat until their home is repaired. If the price of the rental is within their Fair Rental Value of the damaged property, does it matter the distance or where they stay? This will place them closer to work.

Nevada Subscriber

The cost of Additional Living Expenses (ALE) does not have any correlation with the Fair Rental Value of the property. ALE provides coverage for the necessary increase in living expenses so the insured's household can maintain its normal standard of living. If the insured's mortgage is $1,500 a month and the hotel is an additional $2,000 a month, then the insured gets the $2,000 additional expense of the hotel. As long as the rental is similar to the insured's standard of living, it should be covered. What would not be covered is if the insured lives in a modest home and instead of renting a room in a modest hotel the insured moves into an expensive 5-star luxury hotel. The alternate living accommodations must be similar to the insured's normal standard of living.