Loss of Use - Homeowners Insurance, Palm Bay, Florida

Let's talk about loss of use.

The next part of the policy that’s extremely important, we call it coverage d. Some call it loss of use. Some call it additional living expenses. It means exactly the same thing. When you have a loss, say during a hurricane that keeps you out of your home for a significant or even a short period of time, there are expenses involved that make sure you can maintain your standard of living while your property is being rebuilt.

Keep in mind, the bank wants their payment every month. So now, you have a mortgage payment plus you may have to rent an apartment. That’s expensive.

Absolutely. To stay in a hotel for weeks or even months-- some friends of mine personally that lived in South Florida when hurricanes Frances and Jeanne came through, both storms 3 weeks apart. That can add so much lag time to the repair of your home, and you have to have a place to stay. You have to have food you can cook and food you can eat. You have to have clothes you can wear. And if all of the above is impossible to do in your daily routine because you lost your house, this is the part of the policy, the important part of the policy. That’s gonna tell you how much the insurance company is going to give you to pay those expenses until you can get back into that house.

Keep in mind, too, insurance companies have taken away some coverage. That used to be 20% of your house value. Example is, say you have $100,000 house, you would have $20,000. Now, you’re seeing some of these companies reduce that down to 10%. So again, look at your policy, see what you have and make sure it’s enough.

And don’t ever underestimate the amount of time it can take to get back into your home after you’ve had a loss. Some of you may remember, you may know people in and other places where the lag time to get back into the house, because maybe contractors weren’t available, maybe materials weren’t available, there’s just no way to know how long it’s gonna take. So, this coverage under your homeowner's policy, it's extremely important that you know exactly how long or how much you're gonna get when you are not able to live in your home.

Again, give your agent a call, review your policy, and if you’d like a second opinion, give us a call at the Insurance Center of Central Florida. Our number is below.