Yes, renters insurance will cover your hotel stays. However, there are factors that determine whether or not your insurance provider will cover the cost of staying in a hotel during the time you move back into your home. In most cases, renters’ insurance will only cover your hotel stay if you’re forced to move out of your home due to damage or peril covered by your policy.
Typically, if you are unable to keep living in your home due to a disastrous event covered by your policy, you can file a claim. For instance, if there is a serious occurrence of a fire incident at your home, your insurance company will reimburse you if there’s a need to stay in a hotel while the damage is being repaired.
When Does Renters Insurance Cover Hotel Stays?
Renters insurance covers a wide range of perils and risks, ultimately offering protection to policyholders when a catastrophic event occurs. If a policyholder is forced to move out of his or her rental property due to unexpected damages from perils and risks covered under their policy, your insurance company will cover the cost of hotel stays and other living expenses.
Also, there is an inclusion of loss of use coverage in the renter’s insurance policy. However, this should be included in your insurance policy if you want to enjoy this coverage. Loss of use coverage comes in when you file a claim and your insurance company determines the extent of the damage incurred. Once your claim is approved, you will be reimbursed.
Other living expenses Renters insurance will provide alongside your hotel stay;
- Laundry
- Restaurants
- Pet boarding
- Storage costs
- Rent for a temporary apartment
- Gas for your car
- Bus or cab fare
- Parking fees
Perils Covered Under Renters Insurance
Typically, renters insurance offers protection against the perils highlighted below:
- Theft
- Vandalism
- Fire and lightning
- Explosions
- Windstorms and hail
- Smoke
- Rain
- Leakage or overflow of water or steam
- Riots
- Freezing of plumbing, heating, or air conditioning
- Damage from a steam-heating or water-heating appliance
When Does Renters Insurance Not Cover Hotel Stays?
If you leave your home due to damage or a disaster not covered under the policy you purchased, renters insurance will not cover your hotel stay. Let’s say, for instance, that you are forced out of your home due to flooding, and since renters insurance does not offer coverage for flood-related damage, your insurance provider will not cover the cost of your hotel stay or any other expenses.
If your home is really not in good condition, making it inhabitable, your insurance company will pay for your hotel stay.
How Can I File a Loss-of-Use Claim for Hotel Stays?
If there is a situation that warrants you leaving your house, the first and ideal thing to do is to contact your insurance company immediately. Some insurance companies allow you to file a claim online, while you can reach others via phone call. Whichever channel of communication is to be used, ensure you contact them and let them know the extent of the situation you wish to file a claim for.
Once you’ve reached out to your insurance company, you will be asked to fill out a form describing how much you spend on rent, transportation, groceries, and other related expenses. When you’re done filling out the form, submit it to your insurance company. They will now decide on the course of action to take and provide you with all the necessary help you need.
It is important to note that policyholders are required to keep track of all expenses while staying outside of the house. Typically, you will have to save the receipts for our hostel stays and other expenses for your daily living.
How Much Renters Insurance Do I Need?
Basically, the amount of renters insurance you need largely depends on the number of items and assets you have and how valuable they are. You will need a comprehensive renters insurance policy to get adequate coverage and protection against certain risks you are exposed to.
In your best interest, before purchasing renters insurance, it is advisable to take stock of your personal belongings and other assets. This would help you decide how much coverage you need to buy for your personal property.
In addition, you can consult an insurance agent, who will help you get an estimate of how much renters insurance you will need based on the level and worth of the assets you own. All in all, it still boils down to your personal needs, budget, and preferences.
Most importantly, have it on your mind that your insurance company will only reimburse you based on the cost of what you normally spend on your daily living. If it is above it, you won’t be reimbursed. For instance, if you spend $200 on food in a week and you spend $300 on food while you are staying outside of your home, your insurance provider will only pay you $200 to cover the difference.
