Does Renters Insurance Cover Temporary Housing?
If you are a tenant, you’ve probably heard that you should get tenant insurance. Renters insurance is relatively inexpensive and covers a variety of risks, from damage to personal property to personal liability. Find out if your tenant insurance covers temporary accommodation and why you may need temporary accommodation initially.
What is tenant insurance?
First of all, you need to understand exactly what tenant insurance is. Tenant insurance is a policy that a tenant can take out to cover potential unforeseen costs associated with renting an apartment, house, or other living space.
Tenant insurance is different from home insurance, which is typically purchased by homeowners. While tenant insurance and home insurance cover some of the same things, tenant insurance does not cover structural damage to the property. Tenant insurance also tends to be much cheaper than home insurance.
What does tenant insurance cover?
Generally speaking, tenant insurance offers four categories of financial protection:
- Personal Property Damage: Renters’ insurance will cover the cost of damage to your personal property within the limits of your policy when damaged by covered circumstances, such as theft, wind, or fire. It does not cover things like natural disasters and accidental injuries.
- Personal Liability: Renters’ insurance also covers liability costs, including costs related to legal defense, if you are blamed for the injury or property damage of another person. Many policies offer up to $ 100,000 of this type of coverage, but many ignore it. Make sure you know what your policy covers.
- Medical Payments: Some types of tenant insurance will provide limited coverage for medical bills when a guest is injured on the property.
- Additional Living / Loss of Use Coverage: Finally, Renters’ Insurance will cover the costs of temporary accommodation if your accommodation becomes uninhabitable due to covered circumstances.
Does tenant insurance cover temporary accommodation?
As we have seen in the fourth category of coverage, many types of tenant insurance cover temporary relocation housing. Policies use terms such as “additional living expenses” or “loss of use” to refer to this type of coverage.
However, temporary accommodation is only covered when your rental accommodation becomes uninhabitable. For example, if there is significant damage from fire or flood that needs to be repaired, you may be covered. This coverage covers expenses related to alternative housing while you cannot live in your apartment. As a general rule, you should have this coverage until you are able to return.
Policies generally only cover “necessary expenses” and “covered losses”. This means that in addition to paying for the alternative accommodation itself, such as the cost of renting a hotel room or short-term apartment, your insurance will cover additional costs related to your living situation. , as far as they are necessary. For example, your renters insurance may reimburse you for the cost of restaurant meals if your hotel room does not have a kitchen, the cost of a laundry service if there is no accessible washing machine, or additional transportation costs if your temporary location is further away from work.
Most tenant insurance policies state that you are entitled to temporary accommodation that resembles your original living situation, but does not go beyond that. So if you usually live in a studio, for example, don’t expect to be fully reimbursed for the cost of renting a two-bedroom apartment.
Also note that most policies will not cover similar expenses that are not required. For example, if your temporary location has a washer and dryer, your insurance will not cover trips to a laundromat or laundry service.
Most tenant insurance policies do not cover the cost of moving to temporary accommodation, but they can cover damage to your property while it is moving.
What else does tenant insurance cover?
Renters insurance also tends to offer a lot of benefits that you might not immediately think about. This includes coverage like:
- Items stored elsewhere: Many policies cover damage to your property not only in your rental unit itself, but also to property stored offsite. If there’s a flood at your storage unit, for example, check your tenants’ insurance policy to see what might be covered.
- Credit card or bank forgery: In addition to protecting your property against theft, your tenant insurance could cover losses incurred when your checkbook or credit cards are stolen from your apartment.
- Property of others: If you’ve borrowed something relatively valuable from someone else, such as a laptop, home gym equipment, or damaged records in your apartment, your policy may pay the cost of replacing someone’s property. ‘another.
How do I get reimbursed for temporary living expenses?
If your apartment becomes uninhabitable due to a covered loss, such as a tornado or fire, and you move out until it is repaired, you can file a claim with your tenants’ insurance company to obtain reimbursement of temporary living expenses. File all of your receipts so that you can demonstrate the amount that should be refunded to you. Many policies will reimburse you over time, so you will likely need to continually issue receipts to receive reimbursement for each expense.
Keep in mind that most tenant insurance policies have limits on the coverage they offer, so check your policy before spending a lot on temporary accommodation to make sure your costs will be covered.
If you’re looking for tenant insurance, be sure to check the terms of each policy to see if the cost of temporary housing is covered, how much coverage is available, and under what circumstances. That way, if you find yourself in a situation where you need to find temporary accommodation, you won’t have to spend a lot of time and energy worrying about how to pay.