(800) 253-1482Loss of Use Coverage for Homeowners Insurance in Tennessee
Summary: Loss of use coverage, or Coverage D, helps Missouri homeowners with temporary living expenses if their home is uninhabitable due to a covered peril. It reimburses costs like lodging, meals, and other essentials. Homeowners must maintain proper communication with their carriers when filing a claim while also maintaining a record of expenses to ensure a smooth reimbursement process. Estimated Read Time: 4 mins
Loss of use coverage is exactly what it sounds like–it’s there for you when you can’t use your home.
If you have a standard home insurance policy, this protection is a part of your coverage and helps pay for living expenses when your home has suffered a major loss and isn’t inhabitable.
Tennessee homeowners should work with their insurance agents to understand their risks and what to expect from their coverage after a major or total loss to their homes.
How Loss of Use Coverage Protects Tennessee Homeowners
Loss of use coverage in Tennessee homeowners insurance policies helps cover temporary living expenses if a home becomes uninhabitable due to a covered peril.
Coverage D reimburses costs like hotels, meals, and other necessary expenses, typically up to 20% of the dwelling coverage limit (e.g., $80,000 for a $400,000 policy).
Ultimately, you’re protected from the rising cost of living you’ll face while your home is being restored.
To use this coverage, homeowners must file a claim and get approval from their insurance carrier.
Consulting with an insurance agent for specific details is important when enrolling in coverage and filing a claim.
Examples of Coverage D Loss of Use Coverage in TN
There are several ways Coverage D is there for homeowners in Tennessee when they need help the most. Here are common costs loss of use coverage will cover when your home is uninhabitable due to a covered peril:
- Bills for dining out and for groceries
- Costs for boarding your pets
- Fees for parking and transportation
- Laundry bills
- Moving expenses
- Storage costs
- Temporary lodging or housing, such as hotels or apartments
In Tennessee, the average cost for a hotel room can range from $140 to $210+ per night and even more during peak seasons.
Having the right protection in place is essential to avoid these rising lodging costs among other living expenses for you and your family.
Understanding Additional Living Expenses Insurance in TN
The name additional living expenses (ALE) Insurance is just another term for loss of use coverage or Coverage D.
It all works the same way because they are the same protection, simply different industry terms used to describe it.
How Much Loss of Use Coverage Do You Need in Tennessee?
How much Coverage D you maintain in your home insurance will look different for each homeowner, however, it’s in your best interest to maintain at least 20% to 30% of your dwelling coverage’s policy limit.
Each home and homeowner in Tennessee has its own risk tolerance, personal financial factors, and more that will dictate what appropriate coverage looks like.
Remember, the goal of loss of use coverage is so that you can cover living expenses while your home is being restored.
Working with your home insurance agent is going to go a long way in finding the right protection for a worst case scenario situation.
Tips for Filing a Loss of Use Claim in Tennessee
When filing a loss of use claim with your carrier, there are some things you’ll want to do and some other actions you’ll need to avoid.
While the process is pretty cut and dry and can be done face-to-face, over the phone, or online, here are some tips when filing a claim through Coverage D:
Track Your Expenses
An essential part of your claim is going to be providing your carrier with proof of your expenses.
Keep your receipts and maintain good recordkeeping while you’re displaced to document what you spend, where, and other details your carrier might need.
Insurance companies require you to submit this information when filing a loss of use claim through your homeowners policy.
Stay In Touch With Your Insurance Agent
Keeping your insurance agent in the loop throughout the entire process can go a long way.
It’s important to discuss your coverage needs when enrolling in your policy but you’re also going to want to keep communication open during the claims process.
This is why it’s important to work with top-rated carriers known for their customer service abilities.
Be sure to review your coverage and its limits with your agent, ask questions, and avoid unwanted surprises when filing for reimbursements.
Keep Paying Your Bills
Before you receive your reimbursement, you must pay your deductible and keep up with home insurance premiums. Otherwise, you may have your claim denied.
If you have a mortgage, staying current on payments is important to avoid credit issues.
In other words, if you file a claim for loss of use, be sure to keep up on your bills or you’ll be digging yourself a bigger hole instead of getting back on your feet.
Compare Quotes for Loss of Use Home Insurance in Tennessee
Who you insure your property with matters, especially during large and total losses to your home.
You’re going to need to trust a carrier that is there when you need it, offers the right level of protection, and doesn’t overcharge you.
The best way to find affordable protection for your home is to compare multiple carriers and policies in your area.
Use the tool below to get home insurance quotes from top-rated carriers in Tennessee or ask an agent today how we help homeowners find the right protection at the lowest price.
