When reviewing your condo insurance policy, you’ll likely come across the term, loss of use coverage. This can be confusing for someone with a personal condo insurance policy and one in conjunction with other condo owners for the building. Below, you’ll find more information on what this means and when to use it in your policy.

What Does Loss of Use Coverage Mean?

If you add loss coverage to your personal condo insurance policy, you can get financial assistance for temporarily relocating from your condo. This coverage will pay a certain amount of reimbursement for hotel rooms, temporary rental, storage expenses, and any additional fees associated with your inability to stay in your condo. You will have a claim, and there will be a limit for this coverage per instance.

When Can You Use Loss of Use Coverage?

As a condo owner, you may need to utilize your loss of coverage for a few different scenarios.

Accidental Fire

If an accidental fire broke out in your condo or a neighboring condo, you could have been affected. During the restoration process, you’ll need to stay somewhere else until the condo is safe to return.

Weather Damage

If there was a natural disaster of weather like high winds, extreme ice, or wildfires, you can claim loss of use coverage in your insurance policy. These situations are out of your control, and you will likely have to find a place to stay during the evacuation process, and the restoration time.

Adding loss-of-use coverage to your policy will give you peace of mind in frustrating and overwhelming situations. If you live in or around the Houston, TX, area, contact us at Insurance Over Texas to get a personal quote on condo insurance.