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What to Know About Loss of Use Coverage

HomeHome InsuranceWhat to Know About Loss of Use Coverage

What to Know About Loss of Use Coverage

In the event your home becomes damaged by a covered event, you might need to live somewhere else while it’s being repaired or rebuilt. Those temporary living expenses can add up quickly, but loss of use coverage can help to reimburse those costs.

Let’s take a look at the basics of this type of coverage.

Who can get loss of use coverage?
Both homeowners and renters can have loss of use coverage, which is commonly included as part of your homeowners or renters insurance policy.

What does it cover?
If you need to move out of your home temporarily, your loss of use coverage reimburses you for some of your living expenses during that period. It typically includes residency at a hotel or short-term rental, moving and storage costs, pet boarding fees and excess meal expenses.

What doesn’t it cover?
Loss of use coverage does have limits. It’s designed to help you with expenses associated with being displaced from your home, but it won’t cover your normal living expenses. For example, you’ll still need to pay your mortgage and child care expenses.

How does the reimbursement work?
You have to file a claim, and you will likely need to pay your deductible.

You can get in touch about the claims process to be better prepared. Typical steps include:

Keeping track of all of your expenses with receipts and photos.
Sharing the documentation with your insurer.
Waiting for your insurer to approve your expenses.
Keep in mind that loss of use coverage has a maximum reimbursement amount. It’s a good idea to regularly review your coverage to see if it matches your current needs.

Don’t hesitate to reach out if you have questions about your coverage or if you’d like to talk about updating it.