(800) 253-1482Loss of Use Coverage for Homeowners Insurance in Texas
Summary: Loss of use coverage is there for you after a major loss. Also known as Coverage D, this portion of your home insurance covers living expenses if your home is uninhabitable. Limits apply but your coverage can help you get back on your feet while you wait for your home to be restored. Estimated Read Time: 4 mins
Table of Contents:
- What Is Loss of Use Coverage?
- How Much Loss of Use Coverage Do I Need?
- What Does Loss of Use Coverage Cover?
- How to File a Claim Through Coverage D Loss of Use
- Get a Texas Home Insurance Quote With Loss of Use
A standard home insurance policy is going to have many different coverages within. After a major loss, life keeps going and you’re left to not only pick up the pieces but maintain your lifestyle. Loss of use coverage is the protection Texans can trust to help pay for temporary housing, dining out, and more when a home becomes uninhabitable.
What Is Loss of Use Coverage?
Loss of use coverage, or Coverage D, is the portion of a standard home insurance policy that protects you in the event that your home is destroyed or damaged by a covered peril and you must seek other living arrangements while repairs are made.
You receive reimbursement for things such as hotels, restaurants, and other living expenses you may incur during a specified time period as a result of your home being uninhabitable.
Having loss of use coverage helps you maintain your standard of living in the event of a disaster. Most standard home insurance policies will provide loss of use protection up to 20% of your dwelling coverage limit.
Meaning, if you have $100,000 worth of dwelling coverage, your Coverage D homeowners policy limits would be approximately $20,000.
It’s important to remember to file a claim and get approval from a carrier before you start to use this coverage. Communication is key. Talk to your home insurance agent for specific information regarding your policy.
What Is Additional Living Expense Insurance Coverage?
Additional living expenses (ALE) insurance is simply another name for loss of use coverage. It works exactly as any other Coverage D policy and can help you maintain your living expenses after a major loss, such as following a house fire.
How Much Loss of Use Coverage Do I Need?
Everyone needs to have at least 20% to 30% of their dwelling coverage limits as their loss of use coverage limits. However, this varies from homeowner to homeowner. The key is to assess your personal risk tolerance and lifestyle to determine what your limits are. Working with an agent can help.
What Does Loss of Use Coverage Cover?
Loss of use coverage provides homeowners with living expenses while their home is uninhabitable. Here are some common expenses your policy covers:
- Temporary housing (hotels/apartments/etc.)
- Boarding expenses for your pet
- Cost of moving
- Grocery/restaurant expenses
- Fees for parking and transportation
- Storage
- Laundry expenses
How to File a Claim Through Coverage D Loss of Use
Filing a loss of use claim is simple. You can typically do so in person, over the phone, or online depending on your carrier. However, there are some tips and tricks that can help you have a smoother claims process, particularly because not everything may be covered by Coverage D:
Keep Your Receipts
Expenses look different for everyone. If you are looking to get reimbursement, your carrier is going to require proof. Keep track of everything and present your expenses to provide your carrier with confirmation.
Speak With Your Insurance Agent
In order to make sure there are no issues with an expense not getting approved, you’re going to need to communicate with your home insurance agent. This is why it’s important to work with a top-rated carrier that can provide excellent customer service. Confirm your expenses, discuss your normal lifestyle costs, and be sure to discuss your policy’s limits.
Cover Your Deductible and Mortgage
Even when you’re waiting for your reimbursement, you’re going to need to deductible before it can be processed. You’re also going to need to pay your home insurance premiums. Finally, if you have a mortgage, continue to stay current on your payments. Otherwise, you could face negative repercussions to your credit score and/or have your claim denied.
Get a Texas Home Insurance Quote With Loss of Use
For most, home insurance in Texas includes loss of use coverage. To find the right level of protection at the lowest price, you’re going to need to shop and compare. Here at Freedom Insurance Group, we partner with more than 25 top-rated insurance carriers across Texas. Get your free home insurance quote online or ask an agent today.
