For our loss of use, our insurance offers a choice between ALE and Fair Market Rental coverage. If we choose Fair Market, does that mean they are required to pay us that amount in cash without having to provide the hotel receipts, etc. for ALE.
Matthew Carlson asked 5 days ago 1 Answers
Hi Matthew,
Yes, depending on your specific policy language, if you elect Fair Market Value (FMV) coverage, then the carrier will pay you in lieu of your actual incurred costs. This means the carrier does not need your receipts, but will also not consider any additional costs such as hotel, mileage, increased utility expenses and/or temporary increase in food costs.
We would recommend that you discuss how your carrier determines the FMV for you home. Often Zillow or Redfin is used, but this may not reflect any additional benefits for your property, such as pool, spa, location; these could be talking points with your carrier which could increase your FRV.
Kindly, UP Staff
Please login or Register to submit your answer