Which of the following would provide coverage for loss of income when an insured rental dwelling is rendered uninhabitable because of a covered loss?

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Most people know renters insurance covers their space. But what about its other perks? We review additional protections it may provide.

Whether your landlord requires it or a near-miss tornado prompts you to purchase it, renters insurance is a smart investment. A renters policy will typically provide replacement cost coverage for personal property damaged by a covered loss such as fire, smoke, covered water damages, theft and it likely offers many other protections you've not considered.

Here are answers to a few common questions about the unexpected uses of renters insurance.

Does renters insurance cover temporary housing?

Yes, if your rental is rendered uninhabitable as a result of a covered loss. Loss of use or additional living expenses coverage pays for temporary housing until you can return to your rental or move into a new one.

Does renters insurance cover hotel stays?

Yes, loss of use coverage typically pays for hotel stays if your residence is uninhabitable as a result of a covered loss.

Does renters insurance cover my food or gas?

Yes, your plan likely covers the increased costs you incur as a result of your home being uninhabitable. Food and gas costs associated with living in temporary housing may be more than what you incur at your home. If staying in a temporary location or hotel increases your commute or causes you to dine at restaurants for meals, your plan will likely reimburse the extra expenses you incur up to your coverage limits. And when you're back in your own dwelling, does renters insurance cover refrigerator food loss? It's possible. If the food in your refrigerator is spoiled due to a power outage or failed appliance, it may be covered under your policy.

Does renters insurance cover damage to a landlord's property?

It depends. Landlords have their own insurance policies to protect their buildings from things like fires and storms. If you cause damage, however, the costs could fall on you. Your insurance may cover accidental mishaps, but you'll be on your own for any intentional damage. Also, your plan won't cover a lost security deposit. Check your policy or speak with your insurance agent to better understand what coverages your policy provides.

Does renters insurance offer medical coverage?

Typically, yes, if a guest is hurt in your home as a result of a covered claim, whether they fall or your dog bites them, renters insurance may cover their medical bills up to your policy limits. A typical renters policy does not provide coverage if you, or someone who lives with you, is hurt at your home.

Does renters insurance provide legal liability protection?

Yes, typically a renters insurance policy provides liability protection for covered claims. For example, if someone is hurt in your home and sues you, renters insurance may cover any claims or lawsuits brought against you including your legal fees, up to policy limits.

Does renters insurance cover car theft?

Yes and no. Typically, automobiles are excluded from coverage under a renters policy. Auto insurance covers the car itself, but renters insurance may cover possessions stolen from your car.

Do roommates need separate renters insurance?

It's a good idea. While the policy provides coverage for the insured and their resident relatives, any non-related roommates would need to be listed on the policy to have coverage. If relatives or roommates are listed, you may want to increase the limits to ensure appropriate coverage limits. Another option is for each roommate to purchase their own separate policy.

If damage to your home is covered by your policy, and you must leave it while it’s being repaired, where would you stay? Would the cost of a hotel or temporary apartment fit into your budget? Having loss of use coverage included in your homeowners insurance policy can help. If your home is damaged by a covered loss, loss of use coverage can help pay for your additional housing and living expenses while your home is being repaired or rebuilt.

What Is Loss of Use Coverage in Homeowners Insurance?

Loss of use coverage, also known as additional living expenses (ALE) insurance, or Coverage D, can help pay for the additional costs you might incur for reasonable housing and living expenses if a covered event makes your house temporarily uninhabitable while it’s being repaired or rebuilt.

ALE insurance reimburses homeowners for additional living expenses stemming from temporary relocation after a covered loss. For example, if your house is severely damaged by a fire, your loss of use coverage would reimburse you for the cost of a hotel up to your coverage limit.

Many homeowners insurance companies include loss of use coverage in their policies and place a limit as a percentage of your dwelling coverage. For instance, if your limit is 30% and your dwelling coverage limit is $200,000, you would be covered for up to $60,000 under your loss of use coverage. Policy limits vary by insurance company and by policy, so if you have questions regarding your specific loss of use coverage limit, contact your insurance representative. Typically, you can increase your coverage limit for an additional cost.

Loss of use coverage only applies to damage caused to your home by covered perils. For instance, if your home is flooded and you don’t have flood insurance, your loss of use claim would not be covered as a result of this type of loss.

What Does Loss of Use Protection Cover?

As previously mentioned, loss of use insurance typically provides coverage for additional living expenses resulting from a covered loss. In simpler terms, this means you would be covered for expenses you wouldn’t ordinarily have if you were living in your own home. For example, let’s assume you typically spend $100 on gas per month, but that amount has increased to $150 because you live in a hotel that is farther from work while your home is repaired. In this scenario, you would be reimbursed $50, which is the incremental cost. A list of common additional living expenses that are typically covered under loss of use insurance is provided below.

• Cost of temporary housing, such as a hotel or a motel.
• Taking public transportation.
• Boarding a pet.
• Additional food expenses.

If you’re renting your home or part of your home, and it becomes unlivable due to a covered loss, Travelers would pay the fair rental value for the rental income you’re missing out on. Keep in mind that your insurance company won’t cover expenses that are not incurred during this period, such as utilities.

What Is Not Covered by Loss of Use Protection?

Loss of use protection does not cover expenses that you were already responsible for before the loss. You will still be responsible for paying your mortgage, insurance, child care expenses and so on. The important thing to remember is that loss of use protection is for additional expenses you become responsible for because you can’t live in your home.

For example, if your family normally spends around $200 a week for food, but now you are staying in a hotel without a kitchen, you may need to eat out for most of your meals. Eating out is costing you $300 a week. Under loss of use coverage, the $100 additional expense per week would be covered.

Do I Have to Pay a Deductible on Loss of Use Insurance?

You may be responsible for a deductible for other parts of your claim. Your homeowners insurance representative can explain your deductible further and help you explore other coverages you may want to add to your homeowners policy. The goal is to make sure you have coverage that fits your needs.

How Much Loss of Use Coverage Do I Need?

Everyone’s insurance needs are different. Loss of use coverage is typically based on your dwelling coverage and calculated at about 20% to 30% of the dwelling coverage limit. Consider whether this is enough to cover any necessary increases in your living expenses if your residence is not habitable while damage is being repaired or replaced.

Consult your insurance agent about your individual policy to understand the amount of loss of use coverage you have; this is subject to coverage terms and limits. Or, speak with an agent or Travelers representative to learn more about loss of use coverage.

To insure your personal property, get a quote or find an agent.

An HO6 insurance policy is homeowners insurance for those who own a condominium or co-op unit. As a condo or co-op unit owner, you own and are likely responsible for damages to your unit. Outside of your unit, you have rights and/or an interest in the common areas of the property, but the condo or co-op association may have primary responsibility for insuring that portion of the property. HO6 condo insurance protects your unit and everything it contains, provides liability coverage, loss of use coverage and more.

What Does an HO6 Policy Cover?

If you own a condo or co-op unit, the common areas like the hallways, land and other shared areas typically are covered by a collective homeowner’s association insurance policy. But your unit is not always covered by this policy. That’s why you need condo (also known as HO6) insurance. If you renovate, you will want to be sure the increased value of your unit is covered. If you have valuables – for example, a big-screen TV, golf clubs or jewelry – you’ll want to be sure that you’re covered against theft or vandalism. If someone is injured while visiting, you’ll want to be protected from liability. Or, if a catastrophe happens and you need to move out of your unit temporarily due to damage from a fire, windstorm or other covered emergency, you’ll want to be protected from additional living expenses. HO6 insurance provides:

• Building/Unit/Dwelling Coverage – Like homeowners insurance, it provides coverage against fire or smoke damage, storms, vandalism or internal plumbing issues like a burst pipe.
• Personal Property Coverage/Theft Protection – Helps cover personal items such as furniture, clothing, electronics, or jewelry in your condo.
• Personal Liability/Medical Payments – Helps cover legal expenses if you are sued for accidentally harming others or damaging their property, or to pay medical expenses of guests who are accidentally injured on your property.
• Loss Assessment Coverage – Helps cover you when you are responsible for additional costs shared by the condo association not covered by their insurance policy.
• Additional Living Expenses – Helps cover the costs of lodging, and other living expenses if your unit is rendered uninhabitable by a covered cause of loss.

What Isn’t Covered by an HO6 Policy?

There may be situations where HO6 insurance doesn’t apply because the condo association’s coverage will apply. There also may be situations where coverage isn’t afforded under an HO6 policy, such as:

• Regional Hazards – You will need separate coverage against earthquakes, nuclear hazards or sinkholes.
• Intentional Injuries to Others – Your liability coverage helps protect you if harm to another is accidental, not if the harm was caused intentionally.
• Damage from Underground or Municipal Water – While damage from your internal plumbing may be covered, you may not be covered if a sewer line backs up and floods your unit.
• Routine Wear and Tear – As a condo owner, you are responsible for maintaining your unit, so you won’t be covered for normal and preventable damage to the unit or any appliances in the unit.

There may be unique situations that require additional coverage, such as if you don’t occupy your unit. Talk to your independent agent or Travelers representative for guidance.

Learn more about Condo Insurance

If you’re a condo unit owner or are thinking of buying a condo unit, make sure that you have the right insurance coverage. When talking to an insurance agent, you’ll want to talk about any modifications you’ve made to the condo, as well as what you’ve brought (or plan to bring) into your condo. Your agent also can advise you about additional types of coverage requirements based on your region and your condo association.

Ready to get started? Learn more about condo insurance from Travelers.

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