On Behalf of Zar Law Firm | Aug 14, 2024 | Property Insurance Claims

When a natural disaster, fire or other unusual situation causes catastrophic damage to a property, homeowners expect support from insurance companies. After all, they have probably paid thousands of dollars in premiums over the years without ever filing a claim. When something happens that makes a home unsuitable for occupancy, insurance coverage can make all the difference.

Most standard homeowners insurance policies provide two main types of coverage to support those who cannot currently live in their homes. Obviously, insurance can pay to repair a property or to rebuild a home that is structurally unsound. Homeowners insurance usually also covers two other important expenses that families may incur when they can’t stay at their primary residence.

Temporary housing expenses

Depending on the extent of the damage to the property and the demand on local construction companies, it may be some time before a residence receives the professional attention necessary to make the property habitable again. Homeowners insurance policies usually include displacement benefits that cover the cost of a short-term rental or even rooms in a local hotel.

Shopping around to find reasonable accommodations and prices can help displaced homeowners maximize the support that they receive when dealing with an uninhabitable property. They may need to find a way to stretch their benefits for weeks or even months until their residence is safe to occupy again.

Additional living expenses

Most homeowners insurance policies that include temporary housing benefits also have additional living expenses (ALE) coverage. For example, those living out of a motel room may not have access to a full kitchen where they can consistently cook. They may need insurance to help cover the cost of takeout meals. In some cases, they may require pet boarding, storage units and the help of a moving company. Those expenses can also fall under the umbrella of ALE coverage.

Those facing displacement from their residence after a fire, major storm or natural disaster often need assistance. Policyholders may need to review their coverage carefully and may require support while communicating with the insurance company. Too many people end up covering costs that insurance should pay for because they accept subpar settlements or fail to make claims for covered expenses. Having the right assistance when dealing with a sizable homeowners insurance claim can make a significant difference for temporarily displaced homeowners.