We had a fire. We have state farm insurance. Have $37000 in content insurance. Living expenses limited-20%?

Question

If we exceed the $7400.00 in necessary living expenses can State Farm bill us for the excess. I realize the quick answer is yes. But, we have been told by several people that they cannot. I am looking for an answer from someone in the insurance field or someone qualified to answer this question.

Answer 1

When your additional living expenses are met, State Farm will stop paying.  Also remember, this is ADDITIONAL living expenses, so it is the difference between what you normally pay per month in expenses & what you have to pay MORE to live elsewhere.  As an example, your normal living expenses are $2000 per month for rent, utilities, food, etc & then you have to live elsewhere, so your expenses are now $3000 per month.  The policy will pay the $1000 difference only.  Now, there is a time limit, you can't living in a hotel forever, if your apartment will take a very long time to fix, they will expect you to find another apartment in a reasonable amount of time, or if the apartment will take a relatively short amount of time to fix, they will expect you to move back as soon as you can.  You can ask your adjuster for the specific details.

Answer 2

Yep, whatever the limit is, that's the most they will pay.  That's what limit MEANS.  State Farm isn't going to bill you anything.  The hotel where you are staying, THEY are the ones that will bill you.  State Farm will stop paying at $7400.

Answer 3

The policy will not exceed it's specified limits.  It will cease when the limit is reached and not pay any more.  Additional arrangements cannot be made as the policy exhausted its limits.

Answer 4

State Farm does not pay more than the policy limit.  Therefore, if you exceed that limit - you pay that - not them.