A homeowners insurance provision can assist with covering living expenses following a natural disaster.

• Homeowners and renters can cover living expenses like temporary housing after a natural disaster with the help of "loss of use coverage" or "additional living expenses" insurance.
• Karl Susman, president and principal insurance agent of Susman Insurance Services, Inc. in Los Angeles, stated that he is unaware of any homeowners policy that does not already include it.

In the event that your home becomes temporarily uninhabitable due to a natural disaster, your homeowners or renters insurance policy may provide coverage for new lodging and other living expenses.

According to CoreLogic, insured wind and flood damage from Hurricane Helene could be up to $17.5 billion. Meanwhile, Morningstar DBRS estimates that insured losses from Hurricane Milton could range from $30 billion to $60 billion.

Experts advise homeowners and renters impacted by natural disasters to inquire about "loss of use" or "additional living expenses" coverage from their insurance providers.

The provision aims to assist in covering reasonable living expenses if your home is uninhabitable due to a covered peril such as a hurricane, fire, or burst pipe.

Karl Susman, president and principal insurance agent of Susman Insurance Services, Inc. in Los Angeles, stated that he is unaware of any homeowners policy that does not already include it.

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When filing a claim, it is crucial to inquire about loss of use coverage from your insurance company and how soon it can begin, advised Shannon Martin, a licensed insurance agent and analyst at Bankrate.com.

Your carrier may expedite the filing of your loss of use claim and issue a check promptly to avoid financial difficulties, as suggested.

Experts advise considering the coverage and its implications before using it.

How loss of use coverage works

Homeowners insurance policies typically include a provision for loss of use coverage, which is approximately 20% of the dwelling coverage. This coverage is paid out when the home becomes uninhabitable and the policyholder requires funds for living expenses while the home is repaired or rebuilt. Experts suggest that eligible expenses may include a hotel or rental home, food, pet boarding or storage fees, among others.

Susman stated that the cost of rebuilding the house, which is $100,000, is the dwelling coverage.

He stated that the policy would include $20,000 in coverage for loss of use automatically.

Martin suggested that by paying for your hotel and food, you and your family can ensure financial stability during your extended separation from home.

As Susman stated, rentals and condominiums often have similar provisions in their insurance policies.

The primary coverage for renters and condo insurance is not dwelling, but rather personal property, he stated. Typically, renters and condo insurance policies provide 20% of personal property coverage for loss of use.

Inquire with your insurance company about any limitations on loss of use coverage, such as dollar caps or time limits.

'It's not intended to be a long-term solution'

Experts advise that while loss of use coverage can assist homeowners in meeting their living expenses following a natural disaster, it is only intended as a temporary solution, not a permanent remedy.

"According to Jeremy Porter, head of climate implications research at First Street Foundation, the solution is not intended to be a long-term solution, as it does not have enough funds to sustain people for an extended period."

The cost of moving out may vary significantly after a disaster, as there may be less housing available and hotels may increase their prices due to demand, according to Susman.

After major disasters, experts predict that temporary repairs and broader financial recovery may take a considerable amount of time.

According to Loretta Worters, a spokeswoman for the Insurance Information Institute, it takes a considerable amount of time to recover and recoup.

Susman stated that one can claim on their policy and receive aid from the Federal Emergency Management Agency simultaneously.

Martin suggested that you could use government funds to stay in a hotel for a month, then find a place closer to home and use your loss of use coverage to cover the difference.