Justin Kraus, Personal Lines Manager, explains the importance of additional living expenses.
Additional living expenses is a very important coverage in your insurance policy. In the event that your home is uninhabitable due to a covered peril, this coverage will pay for you to live elsewhere while your home is being repaired. This can include eating meals out, a stay at a hotel or temporary housing.
Some companies offer a cap on this limit, whereas other companies have no limit and will pay any reasonable amount for up to 1 year. It is very important to review this limit, especially if you live in an area where renting temporary housing is expensive like NYC, where rents can range from $3,500 to $10,000 per month. You want to make sure that you have enough coverage for a minimum of 6-8 months.
If you rent your home or unit, this coverage will reimburse you for the lost rent you cannot collect from a tenant because they cannot live there due to a covered peril. This limit should be the amount of at least one year’s rent.
For more information, please contact us.
