When your home is damaged, you expect that your homeowners insurance will cover the cost of repairs as stated in your policy. But what many people do not know is that your insurance policy also probably covers additional expenses beyond those required to fix your house.
What do alternate living expenses cover?
While insurance policies differ, alternate living expenses generally cover the cost of food, housing, childcare, and commuting, above your normal expenses. In other words, most costs that are higher than the ones you usually have while your home is damaged or being repaired may be due back to you by the insurance company.
What does “above your normal expenses” mean?
Alternate living expenses covers the difference between your normal expenses and your expenses when you cannot live in your home. For example, if you spend $20 to commute to work from your home and $100 to commute to work from your temporary housing, you may be owed $80. Another example: if you spend $30 on laundry at your home and $70 taking it to the laundromat during home repairs, you may be owed $50.
What does “maintain your standard of living” mean?
Many policies state that additional living expenses are covered as long as they maintain and do not exceed your normal standard of living. This means that you can’t eat at fancy restaurants three times a day and expect to get reimbursed. On the other hand, if your pool was damaged, the expense of going to a community pool may be covered. Or, for example, if you regularly eat steak dinners at home, you may be expected to eat steak dinners at restaurants during your home repairs. Just be ready to prove your normal standard of living.
Texas Home Insurance Attorneys
Understanding alternate living expenses and what, exactly, should be covered under your insurance policy is extremely important. You need to know this information both before and after you are living outside of your home due to damage or repairs. If you believe that your insurance company is not covering expenses incurred due to your home damage, you may wish to speak with a Texas bad faith insurance attorney. Call the Voss Law Firm today to schedule a free consultation: 886-276-6179.