Additional living expenses, or as it's called in the industry, Loss of Use, comes into play when a home incurs a covered loss that makes the home inhabitable while it is being repaired. The coverage provides lodging, meals, and reimbursement for any other applicable daily living expenses beyond what the client pays normally. Additional living expenses can add up quickly, particularly in a situation where a home is being rebuilt after a significant covered loss. Look for coverage that allows policyholders to stay comfortable and maintain their standard of living such as in a comparable home in the same school district.
Another big-ticket item is a coverage called rebuilding to code, or Law and Ordinance coverage, which pays for the cost of complying with new or changing building codes following a covered loss. For example: When rebuilding a 75-year-old home that suffered substantial loss due to a fire, contractors find that the cost of rebuilding the home to code will be an additional $100,000. Look to see if the law and ordinance coverage limit is adequate. If the law and ordinance coverage limit is adequate in the insurance policy, that cost would be covered.
When a home incurs a loss from wind, fire, or another peril, there can be a significant amount of debris that needs to be removed, and it can cost thousands and thousands of collars to clean up a property after a significant loss. Debris removal is a coverage your clients should have on their policy, and they should know how much they have.