can my insurance company dictate how my loss of use funds are used, meaning can they tell me how much i can spend per nite for a hotel room

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Oct 6, 2011

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Insurance Question from Camp Springs, MD

Asked on 10/06/2011

can my insurance company dictate how my loss of use funds are used, meaning can they tell me how much i can spend per nite for a hotel room NULL

Answer given on October 07, 2011

Most insurance companies will not “tell” you what you can spend on a loss.  But it does have to be reasonable and customary expenses.  Say your home was damaged and you have to stay in a hotel.  They may be decent hotels in and around the area of your home.  Now, if your home is in Washington DC, the average cost of a hotel could be $300 per night.  Where as, this would be consider a luxury hotel price in suburbs of Kansas City, MO.  If you are seeking a hotel that is out of a reasonable and customary range for your locale, the insurance company may tell you that they will not pay for the cost of that particular hotel. Make sure that you are choosing a hotel within the locale of your home.  Perhaps go online and get the prices of several hotel in your area that you could stay in to show the per night charge is reasonable and customary. They may at that point see (especially if the adjuster is located out of town) that the price you gave them is not out of range.  

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