When something unexpected, like a fire, burst pipe, or major smoke damage, forces you out of your home, your first thought is often where to stay, not what to fix. For Bay Area homeowners, where wildfires and other hazards are a fact of life, temporary housing coverage is one of the most valuable parts of a standard homeowners insurance policy. Wai Cheng Insurance Inc., serving CA’s Bay Area, explains.
How Temporary Housing Coverage Works
Known as “loss of use” or “additional living expenses (ALE)” coverage, this part of your policy helps pay for the costs of living elsewhere when your home is uninhabitable due to a covered event. That could mean hotel stays, a short-term rental, or even meals and transportation if you’re suddenly commuting farther. The goal is to help you maintain your normal lifestyle while your home is being repaired.
What About Earthquakes?
Here’s where California’s unique risks come in. Standard homeowners policies don’t cover earthquakes or floods, which means ALE coverage doesn’t apply in those cases. To be protected after a quake, you’d need a separate earthquake insurance policy that specifically includes temporary housing benefits. Without it, you’d be footing those costs yourself.
Reviewing Your Coverage Matters
Housing costs in the Bay Area can soar after a disaster, so it’s smart to review your policy limits now. Make sure your ALE coverage reflects current rental rates; you don’t want to find out too late that it falls short. Contact Wai Cheng Insurance Inc. to get the details about your particular coverage.
Temporary housing coverage can’t erase the stress of being displaced, but it can make recovery far more manageable for affected homeowners. Contact Wai Cheng Insurance Inc., serving CA’s Bay Area, to learn more.
