Three Reasons Extra Attention Should Be Paid To Your Loss Of Use Clause

Posted on: 5 January 2021

Homeowners insurance is typically required for a house, particularly when you live in a neighborhood with a homeowners association or you have a home loan. Even if your home is paid off, homeowners insurance provides protection that you cannot find anywhere else. There are a number of clauses in any homeowners insurance policy. Many of them will dictate exactly what home structures are covered and how much your insurance policy covers for each issue. One of the most important but most obscure clauses is the loss of use clause. Loss of use relates to the ability to use certain rooms in your home or the home itself. Here are three reasons why you should pay extra attention to your home's loss of use clause. 

Overall cost of stays are important

One of the most used and useful portions of the loss of use clause is when your home has damage and needs work that requires you to stay elsewhere. The loss of use clause will help provide you with a hotel room or extended stay accommodation. The amount that you can use for your accommodations will be outlined in your policy. Make sure to check the allotted amount against the usual cost of comfortable hotel rooms in your city. Make sure that the clause provides adequate coverage so that you are not having to pay your mortgage and hotel costs at the same time in the event of an emergency. 

Meals can be covered under many

If you have a fire in your kitchen or if the ceiling caves in, the kitchen may not be accessible until all of the repairs are done. Until the repairs are completed, you may find yourself eating out more than usual. Even with inexpensive takeout, this will cause your food bills to go up. If you have a good homeowners insurance policy with a loss of use clause, the takeout meals can be largely covered. This means you will have an easy budget booster during the time that your kitchen is out of commission. 

Pets are important too 

When a flood or fire happens at your home, you may have to stay at a hotel or another accommodation until your home is back in ready to live condition. Sometimes, this can lead to separation from your pet, as boarding may be more safe and comfortable for them than a hotel. If you have pet family members, make sure your loss of use clause includes coverage for boarding for the pets in the family. This will assure your animal companion's safety and comfort at a time of displacement. 

Reach out to a professional to learn more about this clause and how it relates to your home insurance