The Additional Living Expenses portion of your homeowners or renter’s policy is included to ensure that you are able to find a place to stay if your home is ever damaged to the point where you cannot live in it for a specific amount of time. Additional living expenses cover more than simply shelter. These funds can be used in a variety of ways to ensure that you are able to survive even though you have been displaced from your home or are not able to live in it while repairs are being made. While most homeowners, renters, and condo owners’ policies include this coverage, others may not. You will need to read the fine print.
What Are Additional Living Expenses?
Additional living expenses are what you pay when you need a hotel, food, or clothing after being displaced from your home. If your home is damaged by a covered peril such as a tornado or house fire, you may not be able to live there until it is fixed. This means finding an alternative living solution like an apartment or a hotel. With these funds, you will be able to buy any items you may need that you weren’t able to salvage from your home before you left.
What Will Additional Living Expenses Cover?
Additional living expenses will cover your shelter, food, clothing, laundry expenses, gas, and any toiletries or necessities you may need. They will even cover storage fees and moving expenses if your home cannot be repaired. The limits on this type of coverage will vary from provider to provider. Once you receive your funds, you will need to keep all of your receipts and an accurate record of how you spent the money. Your insurance carrier may ask for a copy.
How Much Additional Living Expenses Coverage Will You Need?
In some cases, this amount is usually a percentage of the coverage you have on your dwelling. This can range from 20% to 30%. There are times when you may be able to increase the amount of coverage you have in place. It’s important to have a sufficient coverage amount, especially if you don’t know how long you may be forced to live away from your home.
How Long Does This Type of Coverage Last?
How long your coverage lasts will depend on your carrier and the coverage limits you have. Some will last 30 days, while other policies may cover 60 or 90 days. You will need to discuss your coverage options with your insurance provider to ensure that you are comfortable with the amount of coverage you have in place. If you don’t feel that you have enough, ask your agent about purchasing additional coverage.
Cover Your Additional Living Expenses with CAV Insurance
Additional living expenses are a valuable part of your insurance coverage. If you want to learn more, contact our agents at CAV Insurance Agency today. We can go through your policy and find out what’s in place. If you would like, we can discuss adding extra coverage to ensure that you are sufficiently protected.