When storms or natural disasters damage homes, homeowners are often left scrambling. They need to secure the property as soon as possible and prevent damage from getting worse. They need to communicate with their insurance company and possibly also with contractors who can repair the damage to the property.
In cases involving extensive damage, property owners may also need to prepare for the possibility of temporarily relocating. They may need to rent an apartment or stay at a long-term motel for weeks until their home is once again safe for them to occupy.
The cost of those alternative accommodations can add up quickly and put additional stress on people already dealing with a complex property repair. Does homeowners insurance usually help cover the cost of hotels, motels or short-term rentals?
Loss of use coverage is standard
People tend to focus primarily on their liability coverage and repair or replacement coverage when negotiating the terms of a homeowners insurance policy. Thankfully, several additional forms of coverage that are commonly associated with significant property damage are also standard in most homeowners insurance policies.
Loss of use coverage typically provides 20% of the repair or replacement coverage to pay for alternative accommodations until property owners can return to their homes. Some people negotiate for higher or lower coverage levels depending on their support systems and local market conditions.
Homeowners may also have coverage for additional living expenses, including pet boarding, take-out meals while they cannot cook and the cost to replace or rent necessary medical equipment. It is important to realize that loss of use coverage is subject to strict limits, regardless of how long it takes to make a home safe to occupy again.
Policyholders trying to negotiate coverage settlements sometimes make mistakes by waiving certain types of coverage in their eagerness to secure reimbursement for other qualified losses. They may need to budget carefully to ensure their coverage lasts for as long as they need its support.
Those who need to temporarily leave their residence due to damage caused by a storm or natural disaster may need help reviewing their policy documents and negotiating with insurance professionals. Learning more about the standard coverage included in most homeowners insurance policies can help people recognize what types of costs insurance can help them cover.