Homeowners insurance provides multiple types of protection that people usually never need. Most people never have a visitor get hurt when visiting their home, so they never file a claim against their liability coverage. Most homeowners never have a crime occur at their property or suffer substantial storm damage.
However, there are numerous situations that could make a homeowners insurance claim necessary. For some people, what triggers an insurance claim is damage to their homes caused by a storm or criminal activity. When a home becomes uninhabitable, homeowners insurance can pay to make necessary property repairs. In fact, homeowners insurance can even pay for displacement-related expenses.
Particularly in scenarios where there may be numerous secondary expenses, settling an insurance claim too early can be a major mistake.
How insurance can help during displacement
There are numerous scenarios in which a home might become temporarily uninhabitable. Perhaps the damage is extensive enough to force major repairs to key systems, like the electrical supply or plumbing. Maybe the roof suffers such extreme damage that the property is not secure or structurally sound.
Regardless of the reason why the home is not safe to inhabit, the residents may need to temporarily relocate. Most homeowners insurance policies include a degree of displacement coverage. Effectively, the policy can pay up to a set amount for a rented home or a room in a long-term stay motel during work on the damaged property.
In fact, policies also include additional living expense (ALE) coverage that can pay for pet boarding services, takeout meals while people live without a kitchen and even dry cleaning services for their clothing. It is very easy for those dealing with the immediate expenses of a substantial home repair project to overlook those secondary costs until they start accruing them.
Those who have already settled the claim based on estimated repair costs may not be in a position to go back to obtain coverage for alternate living space and additional expenses potentially covered by ALE coverage. Insurance adjusters often take advantage of people’s naivete or ignorance when attempting to settle claims. They don’t educate people about what they can claim and try to push them into accepting less than they deserve.
Reviewing a homeowners insurance policy with a skilled legal team can help people determine what coverage they may qualify for and whether a settlement offer is reasonable. If a settlement is too low, homeowners may need help countering an offer and negotiating a more reasonable arrangement with an insurance company.
