Effective Coverage operates under a set of core values, and one of those core values is education.
The reason for this is that we believe you need to be educated about what your policy does, what it covers, and why in order to make good decisions about your insurance coverage.
We’ve previously looked at renters insurance Coverage A, Coverage B, and Coverage C. Today, let’s take a look at Coverage D. It’s one of the most oft forgotten types of coverage on a Garland, TX Renters Insurance. It’s also the one that most frequently saves your bacon after a significant loss like a fire.
We’ll dive right in below our Video Guide to Texas Renters Insurance.
What Is Coverage D On Renters Insurance?
Coverage D on your renters insurance is called “additional living expenses” or “loss of use.” While the terminology varies, the intention of the coverage does not. When you suffer a loss, it’s a given that you’ll incur additional costs to live if you can’t use the insured premises.
Coverage D is designed to protect you against the significant additional living expenses that occur following a loss. You’ll need somewhere else to stay, and you’ll also have other costs. Perhaps additional transportation costs to get you or your kids to school or work from your temporary accommodations? Food will cost more, since you’ll likely be in a hotel and unable to cook for yourself.
In other words, the policy covers, up to the policy limit, necessary living expenses that you incur in order to continue your life in a way that is as near as possible to your normal standard of living. Since you’re probably still paying rent on the premises that are being repaired after a loss, the hotel costs and other expenses that you incur are on top of those rent payments – that’s what makes them additional.
Since insurance is, broadly speaking, designed to return you to the financial condition you were in before you suffered the loss, Coverage D is one way that the additional costs of a loss are mitigated so as not to make your financial position worse. That’s the reason that the coverage exists, and really the reason that insurance exists at all – so that a loss doesn’t put you in a worse financial position.
Find out below what has to happen before you can use Coverage D to cover additional living expenses!
What Has To Happen Before I Can Use Coverage D To Cover My Additional Living Expenses?
Coverage D does not, and cannot, stand on its own. Loss of use coverage on renters insurance has to be triggered by something else. What is that something else? A covered loss to the insured location – your resident premises. In our article on Coverage C, you saw the long list of perils that are covered. Some of these could well apply even if your damages are fairly small.
If there’s a kitchen fire in the apartment next door, it’s not likely to burn any of your property. But you might have smoke damage that makes the apartment unusable and causes a loss under Coverage C. That smoke damage generally would be sufficient to trigger Coverage D to pay for your additional living expenses while repairs are being made to your property and to your apartment.
Often, if a civil authority forces you to evacuate from your home, Coverage D can apply. If the main water service pipe breaks two floors below you, you probably have no direct damages from the loss. But if the entire building is without water while repairs are made, the city might well order you not to live there. Because there’s a covered loss and damage to nearby homes from the water escaping the burst pipe, you’d have a solid case for loss of use coverage.
One of the benefits of working with Effective Coverage is that when faced with a situation like that, which could go either way, you’re able to ask if it’s worth attempting to file a claim under Coverage D without actually filing the claim. That gives you additional information with which you can make the decision whether or not to file the claim.
What Sorts Of Expenses Are Covered Under Coverage D?
Coverage D on Garland, TX Renters Insurance covers expenses necessary to maintain, as nearly as possible, your standard of living prior to the loss. You’ll need to stay in a hotel, more than likely. In so doing, your food will cost more because you can’t cook meals at home. There will likely be additional transportation costs to get you to work and your kids to where they need to go.
The type of things that can be covered under Coverage D are quite broad, up to the policy limit.
Can I Afford Coverage D On My Renters Insurance?
It’s already a part of the policy, it’s not something you have to add on or endorse at an additional cost!
The national average price of renters insurance is just $187.00, according to the III. That works out to as little as fifteen dollars per month. The vast majority of families can budget renters insurance easily at those prices.
Additionally, it's important to note that renters are at a significantly higher risk of experiencing loss than homeowners. Renters occupy roughly one third of total housing stock in the country, and yet they are fully fifty percent more likely to experience theft than homeowners, according to the Bureau of Justice Statistics.
It only costs a few dollars a month to protect your family, and this cheap renters insurance is a great way to mitigate the additional risks that come with being a renter.
Effective Coverage offers the nation's only completely mobile platform to quote and purchase renters insurance right from your phone or tablet in just one minute. Get an online renters insurance quote today and protect your family.
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- Do You Need Some Time Alone With Your Thoughts? We understand, which is why we created the Texas Guide To Renters Insurance.
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