There are many items covered within your renter’s insurance policy but today we’re just going to focus on Loss of Use coverage. Please look for future blogs on other coverages.
Loss of Use
Loss of Use coverage is automatically included with your renter’s policy but it’s based on a % of your personal property coverage. If you have $20,000 in coverage, then you would have $6,000 in coverage with many insurance companies. When your apartment community offers their in-house renters insurance plan, all too often it will have subpar coverage.
We recently had wonderful customers go through a really bad fire, in which they lost everything. The picture your seeing is from her actual apartment building. They purchased the renter’s policy through their apartment community and ended up with just $1,200 in loss of use coverage.
The loss of use coverage helps in so many ways. You can use it to find temporary housing, such as a hotel to stay in. It helps with the expenses to relocate from one apartment to the next. It can help you pay security deposits, utility connections fees for a new home, and it also helps with food, since being displaced leaves you without a kitchen.
That low coverage amount of $1,200 for a family of 4 gave them just enough coverage for 5 days in a hotel and some food. The apartment community had no vacancies so everyone effected by the fire was left to go find a new place to live on their own. It was a horrible situation and we hope this blog enlightens you to makes sure you watch for this coverage amount. Buying the insurance policy through your apartment community might not be the best option. Please shop around & ask questions. We’re always here and happy to help.