What does your home insurance cover in the event you have to find a temporary place to live?
Often, the mishaps that happen in a home result in minor damages and cause little disruption to the household. However, in the event of a major catastrophe, such as a house fire, it’s very possible that your home will be considered uninhabitable until the effects of the fire and smoke are remediated. Whether your home’s restoration takes several weeks or close to a year, you and your family are going to need a place to stay. In these types of situations, your home insurance policy should provide financial assistance, from covering the cost of a rental home, apartment, or hotel room to giving you money to replace your clothing and basic necessities.
This financial protection is all provided for by the Loss Of Use component in your home insurance policy. In addition, Loss Of Use coverage should reimburse you for expenses that go above and beyond what you would normally spend if you were safe in your home. There are limits, though, to how much your insurance provider will reimburse you for. Typically, the coverage limit for Loss Of Use is set at 20% of the total coverage limit you have selected for your entire dwelling. So, if you have $500,000 coverage for your house and attached structures, then you would have $100,000 (20% X $500,000) in coverage for your additional living expenses.
Your specific insurance carrier may have additional coverage limits, such as a maximum time period that they will pay out additional living expenses, or offer other coverage benefits, such as reimbursement for any rental income you may lose from tenants who lived at your property. Please know that, should a covered disaster ever impact you and your family, your Fred C. Church professional will be here to help you navigate the claims and recovery process.