What is Loss of Use Coverage and Temporary Living Expenses Coverage on Homeowners Insurance?
Hurricanes, tornadoes, and fire are catastrophes that can strike at any time. If your home suffers structural damage and is made uninhabitable by unforeseen circumstances such as storms or fire, you may need to find another place to live while your home is being repaired or rebuilt.
Most families do not have a second home to camp out in while they wait for their primary home to be fixed. The expenses incurred in having to secure temporary housing can add up very quickly. Hiring movers, having to pay rent on top of already paying a mortgage and purchasing new furniture to replace what was possibly lost are among just a few of these expenses. There are many more expenditures incurred when relocating temporarily that can potentially wipe out a homeowner’s savings.
Fortunately, homeowners insurance can provide reimbursement protection to help with extra living expenses if you must leave your home’s premises and move into temporary living arrangements for a few weeks or even months.
How Does Loss of Use Coverage Work?
It’s important to know that there are limits in homeowners insurance policies as to what is covered under the loss of use portion and that there are stipulations on how much of your loss and alternative living expenses will be reimbursed.
This is why it is vitally important to review your loss of use coverage to confirm your coverage. Keep in mind the amount of coverage under this section of your policy will usually fall in line as relatively comparable to the housing cost and monthly expenditures you normally paid prior to your home’s damage.
Important to Know Before Filing a Loss of Use Claim
To facilitate with your insurance company reviewing and making determination on your loss of use claim, it is recommended that all homeowners keep a record and copies of all receipts that pertain to additional living expenses incurred as a result of temporary move.
As long as your home suffered damage from the kind of perilous conditions covered in your homeowners insurance policy, this method of tracking your extra expenditures will prove helpful to you as well as to your insurance company.
What if My Loss of Use Claim was Denied?
If denied, you should take immediate action. The limit and types of coverage for loss of use varies by company and policy, but a skilled attorney can step in to help you fight a denial and negotiate for loss of use reimbursement with a knowledgeable voice and authority from years of experience handling and successfully fighting insurance claim denials in similar cases.
Contact the Law Office of Alvendia, Kelly & Demarest for a free consultation or call us at (504) 200-0000. You can expect an honest assessment of your claim.