Loss of Use Coverage – When You Can’t Stay in Your Home
Title:
Loss of Use Coverage: How Texas Homeowners Insurance Helps When Disaster Strikes
Intro:
Imagine this: a fire damages your kitchen, making your home unlivable for weeks. Where would you stay? How would you afford hotel bills and extra meals out? That’s where Loss of Use Coverage, also called Additional Living Expenses (ALE), comes to the rescue. At Tony Castle Insurance Agency, we make sure you understand this essential part of your homeowners insurance in Texas.
What Is Loss of Use Coverage?
Loss of Use Coverage helps pay for temporary living expenses if your home becomes uninhabitable due to a covered peril (fire, windstorm, etc.). This coverage is designed to keep your life as normal as possible during a stressful time.
What Does It Cover?
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Hotel or temporary housing costs
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Meals and restaurant expenses (above normal food costs)
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Laundry expenses
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Pet boarding fees
In short, it covers the extra costs of living somewhere else while your home is being repaired.
What It Doesn’t Cover
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The mortgage on your damaged home
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Upgrades you choose during repairs
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Loss due to uncovered perils like flooding
How Much Coverage Do You Have?
Typically, Loss of Use Coverage is 20% of your Dwelling Coverage.
Example:
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If your home is insured for $300,000, your ALE limit is usually $60,000.
That can go a long way toward covering temporary housing, meals, and other expenses.
Real-World Scenario
A fire in your kitchen leaves your home unlivable for three months. Between hotel stays, meals, and laundry, you rack up $12,000 in extra expenses. Loss of Use Coverage keeps you from paying that out of pocket.
Final Thoughts
Life doesn’t stop after a disaster—and neither should your comfort.
Want to make sure your policy includes enough Loss of Use Coverage?
Reach out to Tony Castle Insurance Agency – Your Not So Common Insurance Agent for a quick review today.
👉 Visit mytexascoverage.com or give us a call now.