Does homeowners insurance cover temporary housing?

Your home is your safe haven—unless an unexpected event like a fire or major storm forces you to leave it. In that case, could you and your family afford alternate living arrangements while your house is being repaired?

That’s where loss of use coverage may be able to help. Also known as temporary housing or temporary living expense coverage, loss of use coverage may be included with many homeowners policies and may help with additional living expenses if a covered loss makes your home uninhabitable. Think of it as a safety net that helps you maintain your normal standard of living if you’re temporarily displaced.

What events are typically covered?

For loss of use coverage to apply, your home must be unlivable due to a covered event. These are usually sudden and accidental and may include:

• Explosion
• Fire
• Lightning
• Tornado or windstorm
• Vandalism
• A vehicle hitting your home

Sometimes, civil authorities evacuate people from their homes if hazards like wildfires or landslides are expected. In some situations, loss of use coverage may apply. Coverage depends on your policy, state and specific circumstances.

What expenses does loss of use coverage help with?

If you are temporarily displaced from your home due to a covered event, American Family Insurance may help cover the reasonable and necessary increase in living expenses you incur to maintain your household’s normal standard of living. This includes assistance with the cost of things like housing, moving, storage, food, utilities, laundry, and commuting—up to your policy’s limits.

In some cases, loss of use coverage may not have a separate deductible, but deductibles and limits can vary by policy and state. Review your policy or talk with your agent to confirm what applies to you.

What’s not covered by loss of use?

Loss of use coverage is meant to cover additional living expenses—costs you have to pay because you can’t live in your home. It doesn’t cover your normal, ongoing bills. Expenses that typically aren’t covered include:

• Rent or mortgage for your permanent residence
• Your regular utility bills for your primary residence
• Preexisting expenses, such as your wireless bill
• Fees for canceling your lease or mortgage

Let’s talk about your coverage today

Understanding your homeowners insurance is key to feeling secure and confident you have the coverage you need. Contact an American Family Insurance agent today to review your policy and loss of use coverage limits.

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.