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Is Temporary Housing Covered by Your Renters Insurance?

Is Temporary Housing Covered by Your Renters Insurance?

Nov 16, 2022

Renter Insurance

In the unfortunate event that your rented home is involved in an unexpected accident, your renters insurance will cover you. However, if your rented property has sustained significant damage, you might need to find temporary housing elsewhere, which could be expensive. You might be wondering if the costs of temporary housing are also covered by your renters insurance. This blog will help you better understand that.

Will Renters Insurance Reimburse My Temporary Housing?

Renters insurance will cover your temporary housing and additional living expenses if your policy includes loss of use coverage, which is optional. If your rented property is deemed to have suffered significant damage or destruction, the loss of use coverage in your renters insurance agreement might help cover the costs for temporary housing.

It is crucial to keep in mind that your insurance company will only pay out if the damage to the property is caused by one of the perils covered by your policy.

Most Commonly Filed Claims for Temporary Housing

Even if you may deem your rented property uninhabitable, your insurance provider may not agree. Upon filing a claim, the insurance adjuster assigned to your case shall determine whether the property is favorable for living or if you need to temporarily move out while it is being repaired or rebuilt.

Here are a few of the covered perils for which renters claims are most frequently made:

  • Vandalism
  • Rioting or other civil unrest
  • Lightning, smoke, or fire
  • Hurricanes, tornadoes, or other severe windstorms or hailstorms
  • Volcanic eruptions
  • Plumbing, HVAC, or heating-related damage
  • Snow and ice-related damage

How Much Will Your Renters Insurance Cover for Temporary Housing?

If your claim is approved, your insurance company will likely pay out the equivalent of one month's worth of rent while the house you were living in is being repaired or rebuilt. Therefore, staying in a hotel might not be a good idea because it could be expensive for you, and the insurance company will not completely reimburse you for those costs. Consider a short-term rental instead, where your rent will probably be closer to the range of your monthly rent at your damaged rental property.

You might be able to find the most cost-effective rental conveniently on many rental websites. You might have to spend a week in a hotel until you find temporary housing because you might not be able to find a rental quickly. If you let your insurance company know about this, they might pay out a little bit more than your monthly rent, which would assist you in covering some of your hotel costs.

It is essential to remember that the insurer only reimburses you for temporary housing costs and does not give money upfront upon filing a claim, so make sure to keep all of the receipts and hotel bills for the same.

Consult Kneller Insurance to Cover Your Temporary Housing

Contact our professionals here at Kneller Insurance Agency today to have all your questions answered about renters insurance and to help you find the most affordable coverage that best suits your needs.

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