Many insureds don’t take advantage of their Loss of Use coverage on their property insurance policies after suffering a big loss or after being subject to mandatory evacuations. When insureds suffer significant property losses or when damages are so catastrophic that property becomes uninhabitable, it becomes necessary to vacate homes and find temporary housing. Some people stay in hotels, some live with relatives or friends, some leave the state, or some even live in RVs or motor homes. This is an inconvenience that insureds shouldn’t have to suffer. In these situations, it’s best to take advantage of the Loss of Use (or Additional Living Expense) coverage and stay in hotels. The Loss of Use coverage pays for hotels or comparable properties for up to one year. An insurance policy is a contract of indemnity; this means that insurers are obligated to provide the same or better quality of housing and lifestyle that insureds had prior to suffering losses. They should not have to live with friends, family, or deal with any condition that is inferior to pre-loss conditions. Insureds are entitled to comparable living conditions because it’s covered under their policies.
This coverage also applies to commercial, income, or rental properties that become unusable due to a loss or mandatory evacuation. In commercial and income properties, this coverage is known as Loss of Rents or Loss of Business Income and works in the same way as a homeowner’s Loss of Use coverage, encompassing any lost rents or business income as a direct or indirect result of the loss sustained.
Public adjusters are knowledgeable about various aspects of insurance policies such as Loss of Use provisions. Public adjusters can help insureds maximize their compensation because of their thorough knowledge of policy coverages, documentation procedures, as well as the claim process. They ensure that insurance carriers fully meet their obligations. Insurance companies are not going to make insureds aware of their entitlements based on coverages. The insurance company adjuster’s goal is to minimize the carrier’s loss and pay out the least amount possible while keeping insureds satisfied. When people are overwhelmed with losses or intimidated by insurance companies, they accept lower settlements because they just want to get through the ordeal and return to their homes. This is normal and understandable reaction, and that’s why the need for public adjusters exists. An experienced insurance claims expert like Phoenix Public Adjusting represents insureds and make sure the claim process is smooth and stress-free. The firm also works to maximize the settlement insureds are entitled to while protecting their interests.