Insurance Term of the Day: Homeowners Insurance Loss of Use

We all know what to do when life hands us lemons. But, what about when life throws us curve balls? The kind of “curve balls” that damage our property, leaving us without the ability to sleep in our home. These things happen, which is exactly why we have insurance policies.

If you face a loss that results in a claim, the reality is that a valuable asset is damaged which cannot be replaced over-night. For example, when your home has endured a baseball sized hail storm, the holes in your walls may make your home unlivable–even after covering the roof with a tarp. Now you’re faced with an unplanned financial burden. Until the damages can be fixed, you cannot stay in your home, which makes it difficult to use your kitchen to cook your food as well. You will have to find a hotel to stay in, and you and your family will likely be eating take-out for every meal, which is a costly dilemma. For this reason, insurance has a coverage called loss of use.

Loss of use coverage protects you in the event of a major homeowners claim. In summary, having loss of use coverage means your insurance company will help you pay for a hotel, food, and other expenses as a result of a damage to your property that makes your property unlivable.

What does loss of use cover?

• As mentioned above, insurance covers any additional expenses for temporary housing due to a loss.

• Insurance helps cover reasonable food expenses.

• You may be covered for any laundry fees due to loss of use of your washer/drier.

• If you typically use your home phone to make calls, you may run out of minutes on your cell-phone. You may be covered for any over-charges you have during a loss of use of your landline.

• If your temporary residence is farther from your work than your home is, you may be reimbursed for the gas it costs to drive the additional miles.

• Check with your independent insurance agent about what kind of coverage loss of use provides.

Remember that every insurance company and every policy is different. Coverages vary.

It can be very stressful experiencing a devastating claim. Insurance helps takes the burden off your back.

By: KayLynn P.