Renters Insurance Mini-Series: Loss of use

In this mini-series we are bringing you everything you need to know about renter’s insurance. We’ve covered a few really important topics so far but this week’s tends to be overlooked a bit in its level of importance.

LOSS OF USE or additional living expenses.

Loss of use pays what is necessary to maintain your standard of living while your residence is being repaired or rebuilt. This coverage will help cover the excess of what you would normally spend for certain things. You are no longer able to cook at home so therefore you have to spend even more than you normally would by eating out. This coverage will help cover the difference.

Here are a few examples of what type of living expenses may be covered:

  • Temporary housing
  • Additional fuel costs
  • Utilities
  • Food
  • Boarding of pets
  • Storage
  • Laundry and dry cleaning
  • Moving costs

Depending on the insurance company, loss of use can either be a flat amount or it is a percentage of your personal property coverage.

When you are faced with a loss at your residence, the last thing we want you worrying about is where you are going to go and how you are going to pay for it on top of all your other expenses you have to take care of. This is very similar to rental coverage on your auto insurance. If you can no longer use your car because it was totaled or in the auto repair shop, you are provided with a rental car for the period of time needed.

Keep in mind that there are somethings that your policy MAY or MAY NOT cover. Such as, if you are subletting a room in your rented home, you could possibly get reimbursed for the loss of your rental income. However, fair rental value is taken into consideration in addition to the expenses you would normally cover before the loss that did not continue. Such as, your tenant’s utilities.

Lastly, just like a homeowner’s policy, your policy will help cover claims due to covered perils. What are covered perils? Covered perils are the CAUSES of the damages. This typically includes:

  • Fire and smoke
  • Wind, windstorms like tornadoes and hurricanes, and hail
  • Lightning
  • Explosions
  • Riots, vandalism, theft, civil commotions
  • Aircraft crashes

Some common perils that are not covered are:

  • Bed bugs
  • Floods, unless you have purchased a flood policy
  • Earthquakes, mudslides, and other earth movements, unless you have purchased a separate policy

Its always a good idea to read over your policy and understand what it does and does not cover. We are here to help and if you want to learn more, click the link below! 

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