Loss of Use: Do I have it on my flood policy?

What is Loss of Use?

Loss of Use, or Additional Living Expense, may sound familiar from your homeowners insurance policy, but it can also be found on some flood insurance policies. Loss of use coverage covers any additional living expenses, meaning any necessary expense that exceeds what you normally spend. Today we are going to take a closer look on how this coverage is, or isn’t, applied in a flood insurance policy.

How the NFIP covers Loss of Use – or, does it?

Now, let’s say you have a National Flood Insurance Program (NFIP) policy in place and experience a covered loss. You file your claim, the adjuster comes out to do their estimate and the ball is rolling on the repairs. However, your home is uninhabitable due to the damage. This results in having to stay at a local hotel while the work is being completed while also having to frequently eat out since you do not have access to your kitchen.  Are those hotel and restaurant bills covered? Unfortunately, with the NFIP, no they will not be covered and you will have to take extra cost at a loss.

How TypTap covers Loss of Use

Using that same example above but now let’s say you have a TypTap flood insurance policy –  is it covered then? You betcha! At TypTap, Loss of Use is built into the policy at no additional cost to the policyholder. This means that TypTap will cover any necessary increase in living expenses you incur to maintain your normal household standard of living up to $5,000 per policy term. Call us crazy, but if you are already out of your home during a trying time we think you should be reimbursed for your inconvenience! In addition, if your insured property is a Landlord property that you are renting out, this coverage can be used as $5,000 for lost rent during the claim. Here is what Loss of Use looks like on our policy form: For more information or for a TypTap flood quote, please visit www.typtap.com.