The fourth installment in our series regarding your homeowners insurance policy will discuss “Loss of Use” coverage. Many people are not aware that the insurance on your home includes coverage which will pay for you to live in a different location should your house be severely damaged buy a covered peril. Here is an actual example which we recently encountered with one of our clients.
I received a call one morning from a very distraught customer. She stated that she was calling from California and was traveling on personal business. Her neighbor had just called her to let her know that there was water running out from under her garage door and she did not know what to do. I assisted her with contacting the insurance company to file a homeowners insurance claim, then I assisted her in contacting a water remediation company so that they could go to the house and start the repairs. When they entered the home they discovered that it was not only full of water but it was also full of mold.
In a situation like this, there is no way that our client could live in the house while repairs were being made. Because our customer had the proper Loss of Use coverage on her policy, the insurance company was able to put her up in a nice hotel while the repairs were being made to her house.Without this type of protection, this claim would have been a much larger burden than it already was.
Remember to review your insurance policies at least once a year. Homeowners insurance coverage does change from time to time and you want to be aware of how you are protected.