Accidents that happen unexpectedly cause a great deal of worry and tension. Fortunately, if you have sufficient renters insurance and a covered risk causes an accident at your rented home you should be okay. Let’s learn more about renters insurance hotel stay in this blog.
Are Hotel Stays Covered by Renters Insurance?
Yes, Your renters insurance policy’s loss of use coverage may be able to pay for a hotel or rental home of comparable value if an unexpected event forces you to vacate your rented property.
Where Can I Stay in The Interim?
Depending on your policy and the amount of loss-of-use coverage you buy, your insurance company may pay for you to stay wherever you choose. However, be aware that you won’t be reimbursed for more than the limits of your renters insurance policy, so a luxurious stay probably won’t be fully covered. It will most likely be a hotel, motel, or apartment close by. Sometimes, your provider may even determine where you stay.
If I Stay at a Hotel, How Long Will My Renters Insurance Cover Me?
There is a time frame associated with loss of use coverage. These time frames can usually range from three months to one year. To determine your time and coverage restrictions, you must contact your insurer. Loss of use coverage under renters insurance also frequently has a set maximum payout per claim. Let’s say your renters insurance covers loss of usage up to $10,000. If your rental property burns down and needs to be totally rebuilt, you can spend up to $10,000 per claim on extra petrol, food, lodging, and other expenses.
Filing a Loss-of-Use Claim with Renters Insurance
It is advisable to inform your insurance provider right away if a disaster requires you to leave your house. While some insurers allow online claims submission, others demand a phone call. Your loss of use coverage will kick in and pay for a hotel stay or comparable rental unit if your insurer determines that the damage was severe enough to require you to vacate your rental property while it is being repaired or rebuilt.
Additionally, your insurer will require you to complete a form detailing your typical monthly rent, grocery, and transit expenses. Keep your receipts for your hotel stay and other expenses so you can keep track of every dollar you spend while you’re away from home.
Exclusions That Don’t Include a Hotel Stay
Your insurer can deny the loss of use coverage for a few different reasons. In either of these cases, any alternative living arrangements will not be reimbursed by your insurer. These reasons include:
- Any Damage to Your Rental Unit Occurring from An Uncovered Peril
- False Claims
- Inconveniences Such as a Power Outage
Additional Riders You Can Include
You can add more riders to your policy if you’re concerned about some risks exceeding the cap.
- Flood rider: If you reside in a flood-prone location, you should consider adding a flood rider to your policy because renters insurance does not cover floods.
- Earthquake rider: Renters insurance does not typically cover earthquakes or damage caused by them. If you live in an area that suffers from earthquakes, like California, then you should probably schedule an earthquake rider to your policy.