Loss of use insurance can help pay for the additional living expenses you take on when a covered home insurance claim makes your home uninhabitable.
Think about the last time you stayed away from home. Chances are you had to line up a place to stay and pay to eat at restaurants or order takeout. If your trip was long enough, you likely had to handle other necessities, like going to the laundromat, etc.
That's similar to what happens when you are forced to stay away from home while it's being repaired. So say your home is damaged by a fire, and you can't live there while repairs are underway. Coverage D in your home insurance policy can pay for additional living expenses, such as the cost of:
To draw on your loss of use coverage, your home must be made uninhabitable by a peril your home insurance policy covers, such as:
Typically, if your home is undamaged but you still can't access it because of a government mandate or a civil authority, this coverage won't kick in. An exception may happen if a civil authority prohibits the use of your home as a result of direct damage to neighboring premises. In those cases, you may be entitled to two weeks of additional living expenses coverage and/or fair rental value reimbursement.
This coverage won't be effective if your home is uninhabitable because of flood damage.
This portion of your home insurance policy can usually pay for:
Again, these expenses can be covered only up to the limits of your policy. If you need more loss of use coverage, talk to your agent.
Loss of use coverage typically won't pay for:
It also won't pay for additional living expenses when your home is made uninhabitable by a peril your standard home insurance policy doesn't cover, like floods.
We typically suggest having about 20 percent of your Coverage A (dwelling coverage) in loss of use protection. So if your dwelling is insured for $200,000, you would generally want to have at least $40,000 in loss of use coverage.
Of course, your lifestyle may also dictate the amount of additional living expense coverage that makes sense for you and your family. When in doubt, ask your agent for their guidance.
It depends on the provider, but every policy Kin sells does include loss of use protection! And no matter where you buy your home insurance, we strongly recommend looking for a policy that does. It's this extra protection that can make all the difference in recovering quickly from an unexpected loss.
To talk about a policy with a Kin agent, call us at (855) 717-0022. To apply for a policy online and get a quote in moments, start here.
Get to know the parts of your policy through real world examples.
The dwelling coverage portion of a standard homeowners insurance policy pays to repair or rebuild your home’s physical structure, such as walls, floors, roof, windows, support beams, and foundation if your home is damaged by a covered event (fire, wind, theft, etc.).
Home insurance also covers other structures on your property: your detached garage, fence, shed, and more.
Personal property coverage protects your stuff—things like electronics, furniture, and clothing—anywhere in the world.
If a covered claim makes your home uninhabitable, your Kin policy can help pay for extra living expenses, such as lodging, food costs, and more.
Even careful people get sued! Personal liability coverage can help pay for your legal expenses if you're held responsible for another person's injury or property loss.
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