In some situations, home insurance can help you if you are unable to live in your home. These are additional living expenses policies. The policy pays for many of your needs if a covered event occurs and keeps you from living at home for a few weeks or longer. Be sure to understand how this type of policy coverage works. Here is what you should know about it.
When You Cannot Live in Your Home
Some situations can occur in which you cannot live in your home for a few weeks or months. It applies only for a covered event. For example, if a fire occurs and the damage is significant, the repairs may need to take some time. If the damage and repairs limit your ability to live in the home, your home insurance may cover your costs while you move out and repairs happen.
Keep in mind it only applies to when the event is a covered peril. If there was an unexpected or accidental fire, this coverage applies. However, if someone set the home on fire purposefully, it does not apply.
Another key example occurs with water damage. Let’s say an inspector finds significant mold growth in your home. The home insurance does not cover the mold cleanup. In this case, it would not cover the additional living expenses you incur for moving out, either. The cause is always important.
What Will it Pay?
Most often, additional living expenses pay for the cost to live away from home. This includes rent at a location, for example, for your stay. It may cover your food and other expenses, up to a certain amount, based on what you may spend at home. Generally, it covers what excess you are spending due to living away from home.
What About Evacuations?
If the fire marshal or local health inspector condemns your home, your policy may cover your living expenses while the repairs happen. Again, this only applies when the damage is something you could not prevent. It does not apply to situations where you have wear and tear as the underlying cause of the problem.
If you are in such a situation, call your home insurance company. Inquire about whether you have this insurance. Find out if it applies in your current situation. It can help alleviate some of the unexpected costs you are facing when it does.