Fair Rental Value (FRV) Coverage — provided as part of additional living expense (ALE) under a homeowners policy
and as Coverage D under a dwelling policy. If the insured rents a home (or a
part of a home) to a tenant and that home (or that part of a home) becomes
uninhabitable due to damage from a covered peril, FRV coverage reimburses the
insured for the lost rent. Any expenses that do not continue while the home (or
that part of a home) is uninhabitable (e.g., electricity) are then subtracted
from the fair rental value. The payment will be for the least amount of time
necessary to repair or replace that home (or that part of a home) rented or
held for rental to others.