What To Know About Additional Living Expenses With Homeowners Insurance
Are you in a situation where you need to leave your home for repairs to be done? This could be due to a house fire, natural disaster, or another incident where insurance will help pay for the damages. In this situation, you are going to have additional living expenses associated with being out of your own home. Here is how you can expect those expenses to work with your insurance.
Every household has a good idea about how much they spend per week on food, which includes their average expenses between going out to eat and dining out. These costs will be used to determine your average food expenses. Since you won't have a kitchen and will be eating out more often, you'll need to hold onto all of your receipts to show what your expenses actually are. Anything that goes beyond your typical expenses in a week will be reimbursed by your insurance provider.
It is likely that you are going to need some items to get back on your feet. This can include emergency toiletries for things as simple as a toothbrush and toothpaste, to new clothing to replace the stuff that you lost. Your insurance provider will be able to help reimburse you for these urgent items that you need immediately. Some insurance providers will give you a stipend for what you can spend, while others will give you an advance on personal property damages.
Your housing costs will be based on how long you are expected to be out of your home. At first, you are likely going to be staying at a hotel so that you have a place to stay. If there is a short-term repair that will not take that long to perform, chances are that your insurance company will keep you in a hotel.
However, your insurance company is going to look for a long-term solution for a long repair, such as when a home needs to be rebuilt. In this situation, you will likely be moved to a rental home. The benefit of living in a rental home is that your life can return back to normal in many ways. Keep in mind that living in a home with a kitchen means that you will not receive additional living expenses for your meals, since the insurance company is paying for a rental home where you can once again make your own meals.
Contact an agent to learn more about homeowners insurance.