For families, taking a vacation often proves expensive. American Express estimates that, for a family of four, the average trip cost per person ranges between $1,000 and $5,000. That’s a cost you probably can’t afford at the drop of a hat. Yet, unwarranted vacations sometimes arise because of problems in your home itself. If you must leave home temporarily due to a problem, you could face a financial loss. What can you do, instead, to try to offset some of these costs?
If you rent your home, your renters insurance can often cover costs if you must temporarily move out. Work with your agent to determine the appropriate protection for you.
Why You Might Have to Leave Your Home
If you have to make a claim on your renters insurance, this implies that something bad has happened in your home. Sometimes, the accident might even make the home uninhabitable until after repairs. Therefore, financial ramifications will likely result.
Here’s a simple example. Let’s say that a fire breaks out in your rental home. It was an accidental, unpreventable and unavoidable occurrence. Still, it causes water, smoke and structural damage to the house and your belongings. Because of this damage, the house will need repairs, and it might even be unsafe in the meantime. You might have to move out, partially or fully, for a time.
How Renters Insurance Can Help
If you have to move out, even temporarily, it can get costly fast.
Think of a hotel bill alone. It might cost over $100/night. Still, you might need to pay for lodging if you have no alternative place to stay. You might have to dine out, and you’ll probably have to buy critical necessities. Still, your renters insurance might be able to help you.
Most policies contain a coverage element called loss of use protection. It’s a relatively simple type of coverage to understand. It will help you in case you lose the use of your home for a time.
This coverage will usually pay based on your average spending for certain bills. However, every policy varies in its exact method of payment. Even so, each payout will strive to meet the same goal. It will help lessen the personal costs you face if you must leave your home for a period.
Once you move back home, you’ll be able to return to your standard budget. The loss of use coverage will help you get back home without a lot of strain on your personal savings.
Also Read: Why Rental Occupancy Limits Exist