(800) 253-1482Loss of Use Coverage for Homeowners Insurance in Missouri
Summary: Loss of use coverage, also known as Coverage D or additional living expenses insurance, helps Missouri homeowners cover temporary living expenses if a covered peril causes their home to become uninhabitable. This part of your home insurance reimburses lodging, meals, and other essential expenses to maintain your standard of living while facing displacement. Homeowners should file a claim and get approval from their insurance carrier, keep clear communication with their agent, and maintain a record of expenses for a smooth process. Estimated Read Time: 4 mins
A standard home insurance policy includes various coverages to protect you after a major loss, including loss of use coverage.
Life goes on after a major loss and you’ll need to maintain your lifestyle while recovering.
For Missouri homeowners, loss of use coverage, also known as Coverage D, provides essential support for temporary housing, meals, and other expenses when their home becomes uninhabitable.
How Loss of Use Coverage Helps Homeowners in Missouri
Loss of use coverage in home insurance in Missouri protects homeowners if their home becomes uninhabitable due to a covered peril by covering expenses for temporary living arrangements.
It reimburses costs for hotels, meals, and other necessary expenses while repairs are made, helping you maintain your standard of living after a disaster.
Typically, this part of your homeowners insurance offers up to 20% of your dwelling coverage limit; for instance, a policy with $100,000 in dwelling coverage would provide about $20,000 in loss of use coverage.
To use Coverage D, you must file a claim and get approval from your insurance carrier, so it's important to consult with your agent for specific details when enrolling in coverage and again when filing.
Coverage D Loss of Use Coverage Examples
Homeowners in Missouri can receive compensation from loss of use coverage in many ways in the event their home becomes This includes the following:
- Groceries and bills at restaurants
- Laundry
- Moving expenses
- Parking and transportation fees
- Pet boarding costs
- Storage
- Temporary lodging or housing (hotels, apartments, etc.)
Hotels in Missouri are relatively inexpensive, ranging from $120 to $130 per night on average, however, this is still quite the burden for anyone dealing with the loss of their home.
Furthermore, these rates are affected by the time of the year, where you stay, and the type of hotel you choose.
This and your other living expenses can add extra stress to an already stressful situation and this is exactly why having the right loss of use coverage in place is important for every household.
Additional Living Expenses (ALE) Insurance Coverage
Insurance can sometimes have multiple names for the same coverage. Such is the case with additional living expenses insurance and loss of use coverage.
ALE works exactly the same way and is there for you after a major loss when you’re waiting for your home to be restored.
So, whether you call it ALE, Coverage D, or loss of use, either way, you’re prepared for the worst while hoping for the best.
The Right Amount of Loss of Use Coverage Home Insurance in MO
Finding the right amount of coverage looks different for each homeowner but as a general rule of thumb, you’re going to want to maintain policy limits of at least 20% to 30% of your dwelling coverage.
Factors like your own personal finances, risk tolerance, and lifestyle will all come into play, but it’s important to keep things in perspective.
Loss of use coverage is to help you get on your feet during a difficult time. Be sure to compare your options and speak with an agent to find what works best for your needs.
Filing a Coverage D Claim Through Your Missouri Home Insurance Policy
Filing a loss of use claim is straightforward and can usually be done in person, by phone, or online, depending on your carrier.
To ensure a smoother claims process, it’s helpful to be aware that not all expenses may be covered by Coverage D.
Here are a few steps that homeowners can take to ensure their claims are fulfilled when filing a claim due to loss of use:
Maintain a Record
No matter your expenses, be sure to keep the receipts and document everything. You’re going to need proof to submit a claim for reimbursement, so it’s important to keep everything in order for when you need to submit evidence to your carrier.
Contact Your Insurance Agent
To avoid issues with expense approvals, maintain clear communication with your home insurance agent to keep them up to date on the situation as well as to better understand your policy’s limits.
With your agent, you’ll also want to review your usual living costs and confirm your expenses while displaced.
Choosing a top-rated carrier known for excellent customer service is going to go a long way during these situations.
Pay Your Deductible, Premiums, and Mortgage
While waiting for reimbursement, you must pay your deductible before processing your claim can begin. Remember, you won’t receive a reimbursement unless you cover your deductible.
You also need to keep up with your home insurance premiums and mortgage payments while you’re displaced.
Otherwise, you could experience a lapse in coverage, a negative impact on your credit score, and even risk your claim being denied.
Get Loss of Use Home Insurance Quotes in Missouri
Home insurance in Missouri usually includes loss of use coverage, but finding the right protection at the best price requires comparing options.
At Freedom Insurance Group, we work with multiple insurance carriers across Missouri to deliver you the best protection at the lowest cost.
Get a free home insurance quote by using the tool below or ask an agent today about ways to save on your coverage.
