What Is Loss-of-Use Coverage and When Do You Need It?

You’re likely aware that homeowners and renters insurance policies can help you manage losses involving your physical belongings. In the case of the former, coverage may also assist with repairing or rebuilding your home. However, beyond accounting for tangible losses, your insurance may also offer additional financial aid. Consider the expenses you might incur if your home is damaged in such a way that you can’t live there. In such situations, your insurance may help.

Understanding Loss-of-Use Coverage

When a covered incident, such as a fire, tornado, explosion or break-in, renders your home temporarily uninhabitable, you’ll need to find somewhere else to live. Although some people might be able to crash with friends or family, that’s not always a viable option. Fortunately, many homeowners and renters insurance policies include loss-of-use coverage, also known as additional living expenses coverage. If you’re displaced due to a covered incident, your policy can pay out and compensate you for resulting costs.

When Does Coverage Apply?

Loss-of-use coverage can be triggered by a multitude of events and can reimburse you for various expenses. Consider the following examples:

• If a fire destroys part of your home and you need to find somewhere else to live, your insurance may help pay for hotel stays or rent until you’re able to return.

• Following a sudden burst pipe, your home’s kitchen is rendered unusable. In these situations, your insurance could recoup bills from dining out at restaurants.

• In addition to helping you pay for alternative accommodations, your insurance might also cover additional transportation costs, such as if your temporary lodging is further from work.

We’re Here to Help

At Vim Rise Financial Services LLC, we can help individuals and families in Stone Mountain, GA understand loss-of-use coverage and find the right insurance policy for their needs. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.