Do I Have Insurance for Temporary Housing?

Consider the following scenario: a small kitchen fire causes damage to your home or apartment, necessitating repairs to the kitchen and the rest of the property. Could you continue to live there comfortably while repairs are being made? Most likely not.

This is where temporary housing insurance comes into play.

Temporary living expense coverage, commonly known as loss of use coverage or Coverage D, reimburses living expenses when loss or damage to your house due to a covered peril requires you to maintain temporary residence elsewhere.

You can use insurance for temporary housing in the following situations:

After a fire, your home becomes uninhabitable.

A windstorm drove a tree to slam onto your roof, causing damage.

If a covered event, such as lightning, causes your air conditioner to malfunction

If an emergency or necessary evacuation required you to relocate temporarily, you were required to do so

A vehicle crashed into your residence.

Learn how this additional coverage protects your appliances, home systems, and smart home gadgets if a mechanical, electrical, or pressure system fails.

Therefore, what do temporary living expenditures cover if your home becomes uninhabitable owing to a covered event? Here is all you need to know about temporary housing insurance.

What Is Short-Term Housing?

Depending on the length of time your home is unusable, living expenses and temporary lodging might add up—insurance for temporary housing assists in covering the cost of additional living expenditures.

Coverage for temporary living expenses includes the following:

Temporary living accommodations, such as hotels and apartments

Increased food costs, such as restaurant meals, while staying in a hotel.

Storage fees for domestic items
Expenses for additional mileage to the house
Cost of utilities in a new residence or rental unit
Moving expenses
Parking fees
Laundry charges

Remember that this coverage helps pay the additional expenditures associated with temporary living expenses relative to your typical quality of life.

So you'll be protected for a rental house that costs roughly the same as your current home, or if you have to dine out more often because you don't have a kitchen and your meal expenses are $100 higher than normal, your coverage will reimburse you for the difference.

What's Not Included?

Temporary living expenditure coverage varies from company to business. However, some insurance companies do not cover direct or indirect loss or expense due to canceling a lease, mortgage, or land contract or agreement.

Your insurance agent will guide you through the procedure and inform you of the types of charges not covered by loss of use insurance.

Do I Have Temporary Housing Insurance?

Most homeowner's insurance plans include coverage for temporary housing under the loss of use coverage/Coverage D. It protects you against the perils indicated in your policy, such as fire, smoke, hail, wind, wildfire, vandalism, and falling objects.

Typically, your limit is determined by a percentage of your homeowner's insurance. Therefore, if your limit is 20% and your dwelling coverage limit is $200,000, your loss of use coverage would pay up to $40,000 for additional living expenses if you were forced to relocate temporarily due to damage caused by a covered occurrence.