While I Am Waiting on Claim Money, Will my Insurance Pay for a Hotel?

After an incident occurs and you have to make a claim on your homeowners insurance policy, it can be quite some time before you get the funds necessary to repair your home. In some cases, such as theft, this can be really stressful for families, especially when the damage to their homes is significant. In some cases, these homes may not be livable until the repairs are actually made. During this time, you and your family may have to say somewhere else.

Given the fact that you and your family may be put out of your home for some time, it's a good idea to question whether or not your insurance provider is going to provide you with any means to get a hotel or other rental property. It can cost quite a bit to rent a hotel room, and this cost only adds up if you have to stay in it for extended periods of time. If your insurance provider will cover these costs for you, then this will life a great financial burden off of your shoulders.

Checking Your Policy

If you want to find out if your homeowners insurance coverage will help you to pay for a hotel, then you need to look at your policy and see what kind of coverage you have signed up for. If you only have a basic policy, then the odds are that you are not going to get any help with your hotel bills. However, if you have signed up for a type of coverage called loss of use coverage. If your policy includes this, then you can look forward to getting some compensation for a hotel while your home is repaired.

Loss of use coverage is great because it is not just going to pay for your accommodations. It's also going to pay for your other living expenses such as food and other things that might come up in the daily course of living. When you think about it, this kind of coverage could really be a lifesaver for you. It could mean that you and your family are both comfortable and happy while the repairs are being made on your home. Even though an incident has occurred and damaged your home, you can still maintain your standard of living.

When you sign up for your homeowners insurance policy, look into getting this coverage. For a lot of providers, the standard is to provide you with coverage that equals 20% of the amount of your dwelling coverage. So if you have dwelling coverage that equals $200,000, then you can look forward to getting $40,000 worth of loss of use coverage. Not all providers are going to be offering coverage worth this amount, so you need to make sure that you understand just what is being offered before you take advantage of it.

Shop Around for Quotes

Loss of use coverage is not something that is included in a basic policy, so you're going to need to shop around for the providers who are going to give you the best deal on this type of coverage. If you take the time to compare a few different providers, then you will be much more likely to find a price that you can deal with. You shouldn't grumble too much about this extra expense each month, as it could mean that you save hundreds or thousands of dollars later on. With this coverage you won't have to question whether while you're waiting on your claim money if your insurance will pay for a hotel.

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