As a property owner, you want to protect your investment. Unfortunately, if you are unprepared for an unfortunate disaster, you could struggle to figure out your next move. Loss of use coverage protects you in such situations.

The Importance of a Loss of Use Coverage

As a homeowner, you rely on your property as a place of comfort. Imagine one day you're cooking in the kitchen and accidentally start a fire. The flames spread before you can tame them, and soon the fire gets out of control, destroying your entire property.

Consider another scenario: a severe weather moves through your area, causing extensive damage to your home. Suddenly over the course of a few hours, your home becomes uninhabitable.

Such devastating situations are experienced by millions of people every day. However, many are not adequately prepared for such unfortunate events.

Are you prepared if your home gets destroyed and you need a temporary place to stay? Luckily, you can rely on loss of use coverage so that you won't have to deal with the potential financial strain of finding an alternative living arrangement while your home is being repaired.

What Does Loss of Use Coverage Do?

You can purchase loss of use coverage as an add-on to your standard home insurance policy. You will be reimbursed for important living expenses if a disaster destroys your home and makes it uninhabitable. You can avoid the stress of figuring out your next move if a fire breaks out in your home or your neighborhood is hit by a hurricane or tornado. Loss of use coverage protects you from possibly going into debt as you seek to maintain your standard of living. It prevents you from stretching your income to meet your monthly mortgage payments while also paying for your temporary lodging. If you are staying in a rental property, you can also qualify for loss of use coverage.

Benefits of Loss of Use Coverage

Under the coverage terms, you will receive access to an alternative property or hotel that is similar to the one that is being repaired. You are covered if you need to purchase food from the grocery store or if any food is destroyed when your home became uninhabitable. Your commute is covered if it takes longer for you to reach your workplace and run errands because you are staying farther from your home. Any extra parking and transportation fees are covered. If you have pets, you are covered if you have to find a place for them to stay. Loss of use coverage also takes care of any moving costs and storage fees associated with your personal items until your home is repaired.

Loss 0f Use Coverage Reimbursement

The amount of reimbursement that you'll receive in your loss of use coverage depends on your unique situation. Every situation is different. The reimbursement values may also change based on whether you are a homeowner or a renter. You may receive a completely different policy based on whether you are homeowner or a renter.

• As a renter, you do not have dwelling coverage because you are not the owner of the property that you are living in. Renters insurance allows you to adjust the loss of use coverage based on your individual needs and your possessions.
• As a homeowner, you can calculate the amount of money that you will be reimbursed by looking at the dwelling portion of your coverage. Check the state guidelines, as your loss of use coverage maybe 20 to 25% of your dwelling coverage. Keep in mind that you may be responsible for covering expenses that exceed your reimbursement limit.

Natural disasters are beyond your control, and they can happen at any time. However, you can prepare for the worst by adding a loss of use coverage to your standard home insurance policy. That way, you will be protected as you figure out your next steps. Contact Jack Stone Insurance Agency to learn more about protecting your assets during an unfortunate disaster. Our team of experts is here to assist you with all your coverage needs.