Suppose burglars trashed your apartment and stole your personal property.Your rent is $350 per month and you had to live in another apartment house for two months while the landlord had the apartment put back into livable condition.Under which section of an HO policy would you be covered and how much would you recover because of the move?
A)Section I coverage C,$350
B)Section I coverage C,$700
C)Section I coverage D,$350
D)Section I coverage D,$700
E)Section II coverage,$350

Question

Quizplus · Accepted Answer

Section I coverage D (Loss of Use) of an HO policy covers additional living expenses (ALE) that you incur during the time that your home is being repaired or replaced due to a covered loss. This includes the cost of temporary housing, meals, and other expenses that you would not have incurred if your home had not been damaged. In this scenario, the cost of living in another apartment for two months would be covered under Section I coverage D, up to the limit stated in the policy. As the rent was $350 per month and the move was for two months, the total amount of ALE would be $700. Therefore, option D is the correct answer.

Suppose Burglars Trashed Your Apartment and Stole Your Personal Property