Picture this: A hurricane tears part of your roof off, allowing rain to enter your home. Although the damage is covered, repairs will take several weeks, and your family can’t safely live there during that time.
After the initial shock wears off, reality sets in:
Where are we going to stay?
Most homeowners know their insurance may help repair damage caused by a covered loss. What many don’t realize is that their policy may also include Loss of Use coverage, which is also known as Additional Living Expense (ALE) coverage. This coverage may help with the necessary additional costs of living somewhere else while covered repairs are underway.
In other words, your insurance may help with more than rebuilding your home; it may also help you maintain your routine while your home is being restored.
What May Be Covered?
If a covered loss makes the part of your home where you live unfit to live in, your policy may help pay for the necessary increase in living expenses, such as:
-
Hotel accommodations
-
Temporary rental housing
-
Increased food expenses
-
Laundry costs
-
Other necessary additional living expenses
The important word here is additional. Your policy generally isn’t paying all of your everyday living expenses, but it may help with the extra costs you incur because you can’t live at home.
Real-Life Examples:
-
A fire breaks out and damages your kitchen. The repairs are expected to take three months. Instead of sleeping in your own bed, you’re suddenly pricing hotels, searching for short-term rentals, and discovering just how expensive takeout can become when your kitchen is out of commission.
-
A storm has hit your city, and your home no longer has a sustainable roof. You find yourself juggling hotel reservations, eating out and figuring out if you can afford to “live” like this even if it is temporarily.
-
A large tree crashes through your roof during a thunderstorm. Your living room is now getting more fresh air than you ever planned. While contractors repair the damage, you need a place to stay.
These are exactly the types of situations Loss of Use coverage is designed to help with, as long as the damage resulted is a result of a covered loss and the expenses meet your policy’s requirements.
Even though your relatives may sincerely tell you, “Stay with us as long as you need,” we all know that everyone involved usually appreciates having another option after the first week.
Every Policy Is Different
Like every part of a homeowner’s policy, Loss of Use coverage has conditions, limits, exclusions, and time limits that vary from one policy to another.
That’s why it’s a good idea to review your coverage before you ever need it. The best time to understand your homeowners coverage is before you ever need to use it. Taking a few minutes today can help make an unexpected situation much easier to handle tomorrow.
We’re Here to Help
Insurance can be complicated, but understanding your coverage doesn’t have to be.
If you’d like to know more about your homeowner’s policy or whether your Loss of Use (Additional Living Expense) coverage meets your needs, our team is happy to answer your questions and review your coverage with you.
Because when life temporarily takes you out of your home, it’s nice to know your insurance may help you feel a little more at home wherever you land.
