Will My Policy Cover Temporary Housing if My Home Becomes Uninhabitable?

We all cherish our homes and hope they will provide us with safety and livability for as long as we live in them. However, there are certain situations in which your home can become uninhabitable.

A home is considered uninhabitable when conditions make it unsafe or unsuitable for normal living. Common causes include:

• Fire or smoke damage: Significant destruction or lingering smoke can render a home unsafe until repairs are complete.
• Severe water damage: Flooding, burst pipes, or sewage backups can compromise structural integrity or create mold hazards.
• Storm or natural disaster damage: Tornadoes, hurricanes, or earthquakes may destroy roofs, walls, or utilities, leaving the home unsafe.
• Structural issues: Collapsed floors, sagging roofs, or foundation damage can make a house unstable.
• Lack of essential utilities: Loss of heat, electricity, or running water for an extended period can make a property unlivable.
• Toxic conditions: Mold infestations, asbestos exposure, or gas leaks pose serious health risks.
• Pest infestations: Severe infestations of rodents or insects can create health and sanitation issues.

These are serious issues, and as a homeowner, you may be feeling a lot of stress if these situations occur. Where will you stay until your home is fixed?

The good news is that if you have homeowners’ insurance, you should have some coverage that can help. Most homeowners’ policies include coverage for temporary housing if your home becomes uninhabitable due to a covered event, under Additional Living Expenses (ALE) coverage. This coverage pays for the difference between your normal living expenses and your temporary expenses. This means you will still be responsible for your mortgage payment.

ALE typically covers:

• Hotel or temporary housing expenses while your home is being repaired.
• Meal costs if you’re staying somewhere without access to a kitchen, such as a hotel.
• Other increased living expenses beyond your usual household costs, such as laundry, parking, or additional transportation, until you can safely return home.

What to Know About ALE

ALE has some limitations. Make sure to keep the following in mind:

• Your policy will only cover temporary housing if the damage was caused by a “covered peril,” such as fire, wind, or other events listed in your policy.
• The policy only covers the extra costs you incur. For example, if you normally spend $500 a month on food and spend $800 a month while displaced, you can claim the $300 difference, not the full $800.
• There may be a dollar limit on how much your policy will pay or a time limit for how long the coverage lasts.
• You often have to pay for these expenses upfront and then submit your receipts for reimbursement.
• Your insurance company may deny coverage for temporary housing that is significantly more expensive than your regular living situation.

Discuss your situation with your insurance company to ensure everything is covered.

Contact Us Today

Homeowners insurance can help you with expenses associated with staying somewhere else due to a covered event. However, there are some limitations.

A Saline, MI agent from Hartman Insurance Agency, Inc. can provide you with coverage that fits your needs. Schedule a consultation today to learn more. Contact us via (734) 999-4190 or online here.