Costs mount quickly when your home becomes uninhabitable after an incident. Fortunately, a component of your homeowners insurance known as loss of use coverage can step in to help. Keep reading to learn more.
What Is Loss of Use Coverage?
Also known as coverage D or additional living expenses (ALE), loss of use coverage is a standard portion of your homeowners insurance that helps pay the extra expenses you face when you can’t live in your home because it has been damaged by an incident covered by your insurance policy.
To understand the importance of loss of use coverage, just try to imagine all the expenses that arise when you have to live somewhere else temporarily. From accommodation to restaurant bills, the list can get out of hand faster than you think.
Simply put, loss of use coverage offers critical protection to help you and your family when you need it most.
What Does Loss of Use Cover?
Loss of use coverage helps pay a wide variety of expenses while your house is being repaired or rebuilt.
For example, some of the expenses that loss of use coverage may reimburse include:
- Temporary residence (hotel, motel, home rental, etc.)
- Restaurant meals
- Excess grocery expenses
- Moving costs
- Storage costs
- Pet boarding
- Parking costs
Keep in mind that the expenses covered by the loss of use portion of your homeowners insurance may vary.
Also, remember that the idea behind loss of use coverage is to help you maintain your standard of living. So if you are living in a two-bedroom apartment, don’t expect your policy to cover the costs of living in a 10-bedroom house while your home is repaired.
Take the time to read your policy carefully to understand what is (and isn’t covered) as well as the limits of your coverage.
And if you have questions about loss of use coverage or homeowners insurance in general, feel free to contact RF1 Insurance. We’ll be happy to answer all your questions and offer the expert guidance you need.
RF1 Insurance Services: Homeowners Insurance in Southern California
Looking for homeowners insurance in the Golden State? At RF1 Insurance, we work with some of the world’s most trusted insurance companies, including Safeco, Guard, Stillwater, National General Premier, Aegis, and the California FAIR Plan.
Our offices are located in Ontario, California. Contact us today by email (info@RF1ins.com), telephone (909-359-2067), or social media (Facebook, Twitter, LinkedIn) for a free quote or to learn more about a full range of insurance solutions.