Best Companies Homeowners Insurance Loss of Use Coverage
What would you do if an unexpected disaster happened today? Do you know what steps you would take if your house became uninhabitable and you had to find a temporary place to live?
Most people never expect to be hit by a disaster, but it happens every day across the country. Many people have no idea what to do if they are pushed into that kind of situation. Would you be prepared
Fortunately, your homeowners or renters insurance policy with Universal can help you make your disaster recovery a little easier for you, and much easier on your bank account, with the loss of use coverage.
Homeowners Insurance Loss of Use Coverage
What is coverage for loss of use?
It is Coverage D within your homeowners insurance policy that reimburses you for basic living expenses if a covered hazard, such as bursting water pipes, hurricane damage or a home fire, damages or destroys your home, causing That becomes uninhabitable.
Loss of use coverage can be a great help that relieves the stress of a natural disaster. The purpose of this coverage is to protect you and your finances so that you can maintain your standard of living without borrowing.
If you are a homeowner, you will still have to pay your monthly mortgage payment, so we don’t want you to have to pay double the amount each month for a place to live when your house is uninhabitable.
Best homeowners insurance for vacant rental house
Additional housing expenses and fair rental value apply to both owners and renters. There are two categories for reimbursement under coverage for loss of use, and they can help you reimburse the following expenses:
• Hotel or rental house of an equivalent size to the one you had to leave.
• Food in the supermarket or restaurants, as well as any food that perished during the disaster.
• Gas because its displacements and errands are at a greater distance than usual.
• Parking and transportation rates that you would not have found if you had been at home.
• Pet boarding because a hotel or home does not accept them or someone who has to take care of them.
• Moving costs and temporary storage fees to protect your personal belongings while your home is being repaired or rebuilt.
How much is reimbursed with loss of use coverage?
The reimbursement of vacant home insurance coverage for loss of use is exclusive to each person, family and their situation. The amount of coverage may be different for homeowners and renters, since each total coverage amount is derived from a separate part of your policy.
Coverage of loss of use of homeowners
Homeowners can calculate the maximum amount that can be reimbursed using the total portion of their policy housing. Depending on the state in which you live and the type of policy you have, your loss of use coverage can be up to 20% of your housing coverage.
If you have $ 200,000 housing coverage, your loss of use coverage would reach a maximum of $ 40,000 ($ 200,000 x 0.20 = $ 40,000). Therefore, if your total expenses reached $ 40,000, you may be reimbursed in full. However, if they exceed that number, you will be responsible for paying any amount that exceeds its maximum.
Tenants Loss of Use Coverage
Since tenants do not own the property they live in and do not have housing protection for that property, renters insurance offers separate coverage, called “Coverage for loss of use,” which can be adjusted to meet your needs. .
It is always a good idea to contact your universal agent to find out if the loss of use coverage applies to your particular situation before filing a claim.
- Best Companies Homeowners Insurance Loss of Use Coverage