What to know about this important home coverage.
If you have homeowners, condo, or renters insurance, then your policy likely includes coverage for your additional living expenses. However, many people are not sure what this coverage is or what it can do for them. Here’s what you need to know about your additional living expenses coverage.
- Additional Living Expenses Coverage Explained
Additional living expenses coverage is coverage that you can use to pay for your living expenses if your home is damaged and temporarily uninhabitable. For instance, imagine that your home is severely damaged in a fire. While the dwelling portion of your home insurance will cover the cost of repairing your home, it may not be safe for you and your family to stay in the home while it is undergoing repairs. Fortunately, additional living expenses coverage will take care of the costs associated with living away from your home. For instance, it can help you cover the cost of staying in a hotel, renting a temporary residence, eating at restaurants, storing your furniture, and so on.
- Coverage Limits and Exclusions
Like all forms of insurance, your additional living expenses coverage is subject to limits. Most policies come with a coverage limit that is a percentage of your dwelling coverage. For instance, standard policies will offer additional living expenses coverage up to 20% of your dwelling coverage. So, if you have $300,000 of dwelling coverage, then you would have $60,000 of additional living expenses coverage. Insurers also usually cap your coverage at a certain time limit. For instance, your insurer might only offer additional living expenses coverage for 12 months.
This is what you need to know about additional living expenses coverage. Do you have further questions about your homeowners insurance? If so, then contact the experts at Weeks & Associates Insurance Services in Thousand Oaks, California. We are ready to assist you with all your coverage needs today.