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Will My Home Insurance Cover a Hotel Stay?

home insurance for hotel stay home insurance for hotel stay

Aug 16, 2023

Homeowners Insurance

If you wonder if your home insurance will cover your hotel accommodation costs during a holiday, it is not to be! Your insurance provider will offer you home insurance coverage for hotels only when your home suffers extensive damage by a covered peril and is no longer safe to occupy.

This blog provides you with vital information that you need to know about home insurance coverage for hotel stays, such as whether your home insurance covers temporary housing, what additional living expense coverage includes, the coverage limit for a hotel stay, the loss-of-use coverage limit you need, whether this coverage is included in renters insurance, and the steps to file a claim.

Does Home Insurance Cover Temporary Housing?

The additional living expense coverage in home insurance covers temporary housing. At the same time, your house is being repaired following damage caused by a covered loss, making it unsafe for you to reside. The quick housing option is not just limited to a hotel; it may be an apartment or any other place you choose to stay during this period.

While in most cases, this coverage is offered after damage to your home, your policy may cover your accommodation costs if you evacuate due to a potential risk of damage by a covered peril such as a hurricane or wildfire.

What Does Additional Living Expenses Coverage Include?

Additional living expense coverage, also known as loss-of-use coverage, pays the daily expenses that you may not have incurred if you stayed in your home, such as:

  • Accommodation
  • Meals
  • Laundry
  • Conveyance
  • Storage for your belongings
  • Pet boarding
  • Insurance Coverage Limit for a Hotel Stay

A standard home insurance policy allots 20% of your total home insurance coverage limit to additional living expense coverage. The home insurance coverage for the hotel is limited to your additional living expense coverage limit or a fixed period of 12 months, whichever happens first.

How Much Loss-of-Use Coverage Do I Need?

As mentioned above, the coverage limit is fixed at 20% of your home insurance, but the repair expenses depend on the extent of damage to your home. You can consult your insurance provider for added benefits if the coverage limit is inadequate.

You must have a good idea about the perils your home insurance covers. You may need additional coverage if you live in an area vulnerable to damage by a peril not covered in your policy. The excluded perils may include:

  • Flood
  • Earthquake
  • Mold
  • Rust
  • Deliberate damage
  • Lack of maintenance
  • Government action
  • War or acts of terrorism
  • Nuclear disaster

Is Loss-of-Use Coverage Included in Renters Insurance?

Renters insurance also includes loss-of-use coverage, but the coverage limit is based on something other than the home insurance as you do not own the property. Talk to your insurance provider to ensure that you and your belongings are adequately covered.

How to Claim Loss-of-Use Insurance?

You must inform your insurance provider at the earliest so they can help you file an additional living expenses insurance claim.

Safeguard Your Home with Little & Sons Insurance

To learn more about safeguarding your home and possessions with home insurance, get in touch with our experts at Little & Sons Insurance Services today. Our team is ready to provide you with valuable information and assistance to ensure your peace of mind. Contact us today and get started on your journey to safeguarding your assets.

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