Loss of use insurance is an invaluable asset that can assist you and your family during times of unexpected crisis. Commonly included in home insurance policies, it covers additional living costs that would arise if your residence were damaged or destroyed due to a covered peril.
In addition to covering temporary housing expenses, loss of use coverage can also reimburse you for other essential costs like food, hotel bills and pet boarding. The amount of your claim depends on your policy and individual needs.
Coverage for Additional Living Expenses
Loss of use insurance is most well-known for its coverage for additional living expenses ALE insurance, which reimburse you for hotel stays and other costs incurred while away from your home due to a covered loss. While coverage limits and specifics vary by insurer, generally transportation, food, housing and utility expenses are usually covered.
Keep all receipts, as you will likely need them with your claim in order to get reimbursed. It is also wise to track all other expenses such as groceries and dining out since these can be tricky to calculate without access to regular income sources.
Reimbursement for Temporary Housing
If you must evacuate your home due to a covered peril or have to find temporary living arrangements while your house is being repaired or rebuilt.
Loss of Use insurance (ALE insurance or Coverage D) can provide financial support. It's usually included in either homeowners or renters insurance policies.
If you need to temporarily leave your home, Loss of use insurance will reimburse the cost of staying in a hotel or rental property up to your monthly rent. This could include renting out a hotel room, short-term apartment or even renting out part of your own house while it's being repaired.
This coverage won't cover your rent or utilities, but it can help cover the costs of food, transportation and other necessities that might arise while away from your home. These costs can add up quickly and make it difficult to stay within budget when living elsewhere.
Reimbursement for Lost Rental Income
If you must evacuate your home due to a disaster, your homeowner's policy typically provides coverage for lost rental income. This type of feature is common among most policies.
Loss of Use can provide assistance if a fire destroys an apartment, or an earthquake prevents tenants from returning home. It also pays for hotel expenses while repairs are made to your house.
Your payout amount may differ based on your coverage limits and whether or not your home was damaged due to a covered peril.
When filing a loss of use claim, it's wise to keep all receipts. Doing so can help the company calculate your expenses and expedite reimbursement.
Reimbursement for Food
Loss of use insurance is an invaluable tool to help you get back on your feet after a disaster strikes. It typically covers temporary housing, food expenses and the fair rental value of a hotel or rental property.
Policy limits and coverages may differ between insurers, but having home and family insurance can be one of the most essential steps you can take for your home and family.
If your household has been affected by a hurricane, tornado, or other natural disaster, loss of use insurance can be the difference between making rent or staying put until repair work is completed.
Discovering what this insurance can do for you is by speaking with a Universal Insurance agent. They are knowledgeable and friendly, and will answer any questions about the coverage in an accessible way. Furthermore, they'll assist in deciding which policy changes are most essential for you and your family.