What Is Living Expenses Coverage?

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What is Living Expenses Coverage?

<lingo>Living expenses coverage is protection that covers your "normal" living expenses should you lose use of your home to a covered risk. It is usually provided under the broader terms of a homeowners' insurance policy and is sometimes referred to as "loss of use". 
While it can be difficult to exactly duplicate living expenses from one situation to another, living expenses coverage is designed to take the financial burden off of a family when they lose their home. This loss may be for a relatively brief period while a home is being repaired or it could be an extensive period if a home needs to be completely rebuilt. Typical living expenses coverage will pay for a hotel room, meals, storage and even the costs of laundry. Expenses are usually limited to "normal" expenses based on the lifestyle of the insured.</lingo>

Living Expenses Coverage Briefly Explained 

Let's say a family has a fire in their home that will take two months to remediate or repair. This family will incur living expenses to live elsewhere while those repairs are being made. Living expenses coverage is designed to cover those expenses based on the normal living standard of the family. In other words, an insurance company will likely not provide housing in a five-star luxury hotel if a family's affected home was in a middle-class neighborhood. 

 

<twitter>Living expenses coverage is protection that covers your "normal" living expenses should you lose use of your home to a covered risk. It is usually provided under the broader terms of a homeowners' insurance policy and is sometimes referred to as "loss of use".</twitter>

 

 

On the other hand, a family should not have to make significant lifestyle sacrifices in a transition period either. While hotels are usually a short-term solution, an insurance company may seek out a comparable rental home if the repairs will be lengthy. Living expenses may not only include living space but food, laundry, additional transportation expenses, pet boarding fees, storage, and utilities. If a covered home had a pool, it is reasonable to expect living expenses coverage to cover a hotel with a pool or a rental home with a pool. Keep in mind, many policies have limits to these living expenses and keeping detailed records and receipts is critical when filing a claim for living expenses. 

 

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