Displaced After Home Damage: Can You Stay in a Hotel on Insurance?

Loss of use coverage, sometimes called additional living expenses, helps pay for costs above your normal living expenses when you cannot stay in your home. This can include hotel bills, restaurant meals, and laundry. The coverage is designed to keep your household running while repairs are made.

Your policy may set a limit, often a percentage of your dwelling coverage, and a time limit, such as 12 or 24 months. The exact terms vary by insurer and policy. Read your policy documents or ask your insurance company for a clear explanation of your loss of use benefits.

• Hotel room charges
• Meals that exceed your usual grocery costs
• Laundry and dry cleaning
• Storage for belongings if needed
• Pet boarding if you cannot bring pets

After the damage, contact your insurance company as soon as possible to start a claim. Ask about loss of use coverage and what expenses are reimbursable. You may need to choose a hotel that is within a reasonable distance and cost, or your insurer may have guidelines.

Save every receipt, from hotel bills to meal receipts. If you need to move to a temporary rental, that may also be covered. Keep a log of dates and expenses. Submit these to your insurer with your claim. Policies vary, and your insurer decides what is covered.

Loss of use coverage is not unlimited. Once your policy limit is reached or the time period ends, you are responsible for your own living expenses. Your insurer will inform you when you are approaching the limit.

If your home is still not ready, you may need to make other arrangements. Talk to your insurance company about extensions if repairs are delayed. Some policies allow for an extension under certain circumstances. Ask your insurer about your options.