“Oh, there’s no place like home for the holidays,
‘Cause no matter how far away you roam,
When you pine for the sunshine of a friendly gaze,
For the holidays, you can’t beat home, sweet home.”

Most people prefer to be “home” for the holidays, but what happens when “home” is uninhabitable? What if your kitchen is flooded by a burst pipe? Or worse, there is a fire in your home or building and you must move out? (insert sad face here). When a home is damaged by something which is covered by either the HOA’s or the unit owner’s personal insurance, and the folks living there must relocate, who pays for that? This question has come up quite a bit lately! (Hint: it isn’t the HOA!)

Within each homeowner’s (both condo and single-family home) and renter’s policy, is a provision called “additional living expenses.” This is located under the “loss of use” section. Basically, this section states that, if a covered property loss makes the residence unfit to live in, the insurance carrier will cover the increase in living expenses so your household can “maintain its normal standard of living.”

There are limits to this, both to the amount of money available and length of time the carrier will pay. If you need to stay in a hotel for a week or two, the amount automatically included in most policies will probably be enough. However, in the event you need to relocate for an extended amount of time, let’s say (God forbid) your home was completely destroyed by a fire, you may exceed the standard amount of coverage. Additionally, if you are in an area with a high cost of living such as San Francisco, that money may run out quickly. Luckily, you can easily increase the loss of use amount. Be sure to discuss your needs with your agent because additional insurance is usually very inexpensive.

If you have a rental property, or rent out a room in your home, the loss of use section also covers loss of rents. Again, you may wish to check that the amount available is in line with the amount of your rental income.

In the unfortunate circumstance that your family must relocate for the holidays, remember that having the proper insurance in place will help keep your holidays homey, wherever you are!

Terri Guest is the Sales & Marketing Representative for Berg Insurance Agency and may be reached at terri@berginsurance.com