Updated over 2 years ago on .
how can loss of use coverage protect me in an emergency?
What is loss of use coverage and is it really important!?
Loss of use is coverage that covers you when the property you are living in or renting is unable to be occupied due to a peril such as fire, flood, wind, theft, etc.
Essentially, if you aren’t able to occupy your home due to these perils, insurance will cover your hotel or other rental accommodations while your property is brought back to its previous condition. Also, if you are a landlord, it will cover fair market rental income while you are unable to rent it due to it being uninhabitable.
Often times, people comb over this very important coverage or simply don’t have enough coverage. In an emergency situation, it is best to have at least several months of accommodations taken care of. With that said, the difference in your monthly premium of $2k in coverage vs $20k in coverage is minimal. Make sure you don’t skimp out and get the ample coverage! It could just save you from financial disaster given an emergency situation arises.
Reach out with any questions on this or anything else I can do for you!
Best,
Kenny