A mistake many insureds make after suffering a big loss or being mandatory evacuated, is not taking advantage of their Loss of Use coverage on their property insurance policy. When an insured suffers a significant loss to their property or when the damage to the property is so great that the property becomes uninhabitable, it becomes necessary to vacate the home and find temporary housing. Some people stay in a hotel, some go live with relatives or friends, some leave the state, or even live in their RV’s or motor homes. This is an inconvenience that insureds shouldn’t have to suffer; the best thing to do in this type of situation is to take advantage of the Loss of Use (or Additional Living Expense) coverage on your property’s insurance policy and stay in a hotel so you don’t compromise your quality of living. The Loss of Use coverage pays for you to live in a hotel or comparable property to yours for up to one year; you don’t have to live with friends or relatives, or out of your suitcases, or be extremely inconvenienced. Your insurance policy is a contract of indemnity; this means that your insurer is obligated to provide you with the same or better quality of housing and lifestyle that you had prior to suffering a loss. You should not have to live with friends, family, or deal with any condition that is inferior to your pre-loss condition. If you happen to suffer such a loss, be sure to find a hotel, apartment, or house to rent that’s comparable to yours because it’s covered under your policy and you’re rightfully entitled to it.
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 your homeowner’s policy Loss of Use coverage would work and covers any lost rents or business income as a direct or indirect result of the loss sustained.
These are the type of details that a public adjuster would know about your policy and would make you aware of. This is why it’s a good idea to hire a public adjuster to help you maximize your compensation through their very thorough knowledge of policy coverages, documentation procedures, as well as the claim process, and ensure that your carrier fully meets its obligations. If you don’t ask for it, they’re not going give it to you; your insurance company is not going to make you aware of everything that you’re entitled to. The insurance company adjuster’s goal is to minimize the carrier’s loss and pay you the least amount possible while keeping you satisfied; even if it means paying out less than you’re entitled to because you failed to claim it. During stressful times like these, people can get overwhelmed with their loss or be intimidated by their insurance company, and accept a lower settlement than they are owed because they just want to get through the ordeal and be back in their home. This is normal and very understandable, and that’s why the need for public adjuster exists. It’s also a good reason to have an experienced insurance claims expert like Phoenix Public Adjusting represent you and make sure your claim process is smooth and stress-free as well as make sure you that you get the maximum settlement that you are entitled to while protecting your interest in the claim.