Renters insurance is a pretty nifty insurance option for anyone who rents their apartment or house. It’s an insurance policy that’s much cheaper than health, car, or homeowners insurance, but it can still save you in a big, big way.
With renters insurance, you’re protected if something happens to your home or your belongings. Whether a failure in the building, a tornado passing through town, or a burglar causes the damage to your home and your possessions, your renters insurance should cover it. But in some cases, the incident might leave you without a home for a while.
If your home sustains damages and needs to be repaired, you may not be able to stay there. And while you might be looking for an excuse to crash on your friend’s couch, you’ll more likely than not need to head to a hotel for a few days while your home is fixed up. But is that covered by your renters insurance? Read on to find out.
Will renters insurance pay for a hotel if you need one?
Most of the time, yes. Renters insurance includes three things: personal property protection (which covers your possessions), personal liability coverage (which covers you and other people at your home), and additional living expenses.
Additional living expenses is what covers the cost of a hotel. If you’re displaced from your home, and need a place to stay while repairs are made, your renters insurance should cover the cost of a hotel in the interim. However, there are always exceptions.
When will renters insurance not pay for a hotel?
Your renters insurance will only cover the cost of a hotel when the insurance actually covers the event that caused the damage. For instance, let’s say your renters insurance doesn’t cover damage caused by floods. If a flood damages your home and forces you out, then your renters insurance won’t cover the cost of a hotel.
Hotel stays and personal property are covered for the same events in your renters insurance. If the event that caused the damage to the property is covered, then so is a hotel stay. If it isn’t, then a hotel isn’t, either.
In cases of severe damage, you also may not have a hotel stay covered by your insurance because you’ve exceeded your coverage limits.
How nice of a place will your renters insurance cover?
Usually your insurance company will have a nightly limit for your hotel, and they’ll find one for you that fits under the limit. If you want a nicer hotel, the company will usually cover the cost of a cheaper option, and you can make up the difference out of pocket.
How do you go about getting your renters insurance to cover a hotel?
To get a hotel stay covered by your renters insurance, you simply want to file a claim as normal, and include information in the additional living expenses section. Your insurance company will get you in contact with an adjuster, and you can go from there.
Will renters insurance cover other additional expenses?
Life can be more expensive when living out of a hotel than at home. Perhaps your commute is longer, or maybe you have to eat out since you can’t cook. Many renters insurance policies will help you cover this, by adding additional financial assistance if the situation dictates it. Reach out to your insurance agent to see if this is an option for you.
Getting displaced and needing to stay in a hotel is not a fun thing, and hopefully it doesn’t happen to you. Thankfully, if it does, your renters’ insurance should be able to soften the blow by covering the expenses.