What is Loss of Use Renters Insurance and How Does it Work?

What is Loss of Use Renters Insurance?

Loss of Use Renters Insurance is protection associated with your renters insurance if your rental home becomes uninhabitable from a covered loss. It's sometimes referred to as Additional Living Expense coverage. This protection can come to your rescue if a claim from a covered peril forces you from your home for an extended period. If fire damage in your apartment building prevented you from continuing to live in your apartment, you would have reimbursement to temporarily stay in a hotel or similar rental unit for a certain amount of time predetermined by your policy. Loss of Use Renters Insurance covers your "normal" standard of living, so you should expect reimbursement for a similar temporary living situation.

Concerned girl holding cat looking out window

What does Loss of Use Renters Insurance cover?

Loss of Use Renters coverage not only includes the cost to replace your rental for a limited time after a covered peril. The premium may be a flat fee or a percentage of your property coverage. The covered peril can also occur to a neighbor's home but impact your living space. In that scenario, your Loss of Use Renters would still provide coverage but would likely have a shorter relocation allowance. Local authorities closing off access to your house due to an investigation or because your home has become unsafe is also covered. 

Loss of Use Renters Insurance can also cover fair rental value reimbursement for the loss of your rental income if a covered peril forces your tenant to move out. 

Here are a few more expenses included in a Loss of Use Renters policy after a covered loss:

  • Additional utilities
  • Storage units and moving expenses
  • Pet boarding
  • Extra transportation fees, parking fees, and gas
  • Furniture rental
  • Groceries and meals out
  • Credit check costs for a new living arrangement

It's important to know that loss of use only covers the excess of what you usually spend on certain things. Be sure to keep all your receipts. Your insurer will ask you to submit copies of your receipts for review before reimbursement.

woman hugging man with moving boxes in background

What's not covered by loss of use renters insurance?

While Loss of Use Renters Insurance can cover replacement living expenses and additional living expenses, it only remains active during the time to repair or replace your damaged home. If you opt to delay your move back, it will not cover any additional time.

Here are a few more things Loss of Use Renters Insurance does not usually cover:

  • Your rent payment during the time you cannot live in your home due to a covered loss.
  • Relocation due to bedbug infestations.
  • A remodel or renovation of your home that requires you to move out.
  • Cable TV or streaming services
  • Relocation due to earthquake or flooding ( you need separate insurance for these)
  • Power failures
  • Neglect
  • Intentional acts

Two women discussing a new insurance policyHow much does Loss of Use Renters Insurance cost in Virginia?

Most renters policies in Virginia cost, on average, as little as $15 a month. Of course, it all depends on your Virginia location and how much stuff you have. You can learn more about Renters Insurance costs and what's covered. Some renters insurance policies include the loss of use provision, but it is essential to check with your local agent to ensure you are covered. 


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