home on fire

Catastrophes happen all too often. Weather events such as tornadoes and hurricanes, fire and smoke damage, and even a burst water pipe can make your home unlivable for an extended period of time. Have you ever considered what would happen to you and your family if this should occur? 

No one really expects to be hit by a disaster, but we have seen it happen time after time on the news across our country. Are you prepared for what would happen should your home unexpectedly become unlivable due to one of these types of events? How would you pay for basic living expenses, and most importantly how would you afford temporary housing while your primary housing is repaired? 

What is Loss of Use Coverage? 

One protection that many homeowners have as part of their homeowners insurance called Loss of Use Coverage. This coverage goes by many names and can be a lifesaver when catastrophe strikes your home and family. 

Loss of Use Coverage, Coverage D, or Additional Living Expenses (ALE) Insurance are often the same coverage for a home that can not be used due to an event such as a flood, fire, storm, or other event. Specifically this coverage would reimburse you for the cost of a hotel up to your coverage limit.

Loss of Use Coverage only applies to damage caused to your home by covered perils. For example if the cause of the damage is not covered under your insurance policy then the Loss of Use Coverage would not apply to the situation. Flood insurance is one such example

surreal home flood

What Does Loss of Use Cover? 

Typically this type of coverage provides compensation for additional living expenses resulting from a covered loss.While ever policy may be different, the most common coverage include: 

  • Cost of temporary housing, such as a hotel or a motel.
  • Parking and transportation fees that you wouldn’t have encountered had you been in your home.
  • Boarding of a pet.
  • Additional food expenses as well as reimbursement for any food that perished during the disaster.
  • Additional cost of gas if your commute has been extended further from your work.
  • Moving costs and temporary storage fees to protect your personal belongings while your home is being repaired or rebuilt.

Keep in mind that Loss of Use Coverage reimbursement is unique to every person, family and their situation. For instance the amounts and coverage may be vastly different for a renter versus a homeowner. 

What’s NOT Covered? 

Again, depending upon your situation, you will still be required to pay the normal expenses that you were responsible for prior to the event. For example, you will still need to pay your mortgage (even while your home is being repaired or rebuilt), child care costs, car insurance, and the list could go on and on. The protection only applies to additional expenses due to the event. 

If you are unsure if your homeowners policy or renters insurance has the protection of Loss of Use Coverage, talk to our agents today to find out the importance of this protection.