Most home insurance policies in Chandler, AZ, will help cover the cost of temporary lodging, but it depends on a few factors. You can’t automatically head to a hotel and assume your policy will reimburse you for the cost.

Covered Perils

Your home must be considered uninhabitable due to a covered peril for this type of coverage to apply. For example, if your home becomes unlivable due to a flood and you don’t carry separate flood coverage, your ALE coverage won’t help, since the damage wasn’t caused by a peril your policy actually covers. An agent at San Marcos Insurance Group can help you better understand what your specific policy covers.

It Covers the Difference

Typically, policies cover only the additional cost of living when moving elsewhere, not expenses you’d incur regardless. So if staying at an Airbnb costs roughly the same as your normal monthly expenses, you may not qualify for reimbursement on that amount. The same general principle applies to groceries and gas.

Common Exclusions

This portion of your policy, usually referred to as ALE (additional living expenses) coverage, doesn’t cover standard costs such as utilities or your regular mortgage payment for the damaged home. It’s designed to cover only the extra costs you wouldn’t have incurred if the covered event hadn’t happened. Most insurers require receipts rather than simply issuing a check to confirm the funds are actually being used for qualifying additional living expenses.

There’s a lot to consider when it comes to how home insurance handles temporary lodging, including the overall cost of your temporary housing situation. Agents at San Marcos Insurance Group can help you better understand your coverage. Contact us today. We’re currently serving the Chandler, AZ, area.

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