Question

A fire destroyed the home next door to Brad's house. The fire department chief was concerned that the damaged home would collapse onto Brad's house and ordered Brad to evacuate his home. Which of the following statements is true concerning the cost of Brad's hotel room while he is complying with the fire chief's order? (a) The cost of the hotel room is not covered, as Brad's home was not directly damaged. (b) The cost of the hotel room is covered under the "fair rental value" coverage of Part D. (c) The cost of the hotel room is covered under the "prohibited use" coverage of Part D. (d) The cost of the hotel room is covered under the dwelling coverage of Part A.

Answer 1

A civil authority, such as a federal, state, or local government agency or the state police, can prohibit residents from accessing their undamaged homes in a damaged neighborhood or community. This is known as prohibited use of coverage.

In the given case, Brad's house is undamaged but the same is not accessible by him due to the fire chief's order. And therefore, the cost of living expenses in a hotel room is covered under the prohibited use coverage of Part D.

Answer is c.