Most of the time, damage to a home is repairable. Sometimes, though, this is not the case. Your home insurance policy provides loss of use coverage in many cases. It can help to cover instances in which repairs are not possible on your home. Therefore, the resulting damage makes the property unlivable. What situations might lead to this situation.
When Does Loss of Use Apply?
Loss of use protection provides for several key benefits to homeowners. Also called living expenses or Part D coverage, loss of use helps pay for your costs when you cannot use your home. It helps cover costs you incur while repairs or rebuilding takes place. Here are some examples of coverage this may provide to you:
You may need to rent a home while your home repairs take place. It will cover the rental costs. It might also cover a hotel room.
If you cannot cook at home, this component of your policy may help cover your meals.
It can also help cover the cost of moving your home furnishings into a storage area.
Most of the time, this type of insurance is in place in only specific situations. It applies when you cannot use your home for a specific period of time. This is usually beyond a few days. It also only applies when the cause of the loss of use is a peril the policy covers. Additionally, there is a cap on the amount of coverage available. Be sure to know what this dollar amount is.
Let's take a look at the example of a kitchen fire. If one occurs, you may need to leave the home for a few months for repairs. Or, you may be unable to use your kitchen while repairs occur. The costs you incur as a result have coverage under this policy. However, the cause of the fire matters. If it was the result of poor maintenance on an appliance, you may not have coverage. If it was the result of electrical fires or a storm, you may have coverage.
Loss of use coverage tends to be a standard feature of most home insurance plans. Verify this with your home insurance agent. It is an important way to keep you safe and minimize your costs when risks take place that you cannot avoid.
- Best Insurance Services, Inc. can help answer questions about a multitude of insurance questions. Call (979) 297-2655 or visit our website www.bestinsurancetx.com