Make Sure Your High-Value Home Insurance Policy Has Lots Of Additional Living Expenses Coverage

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Make Sure Your High-Value Home Insurance Policy Has Lots Of Additional Living Expenses Coverage

22 June 2016
 Categories: Insurance, Blog

High-value homeowners insurance policies are designed to insure expensive homes. The people that have these homes and policies are often well-off financially, and they're sometimes accustomed to a certain lifestyle. If you meet all of these criteria and want to be able to maintain your lifestyle if your home becomes uninhabitable in a covered claim, you'll need a high-value homeowners insurance policy that has lots of additional living expenses coverage. Here's why, along with how to find such coverage.

Covering Your Living Expenses

Additional living expenses coverage provides coverage for your costs of living if you're temporarily unable to live in your home after a covered claim. As with any insurance coverage, the coverage will only compensate you for expenses that arise from a covered claim. Should your home be burned or otherwise become uninhabitable (and your homeowners policy covers the incident), your policy's additional living expenses coverage might help you pay for meals and lodging until you're able to return to your home.

Determining Your Coverage Needs

Everyone has different additional living expenses coverage needs, because everyone is accustomed to a different lifestyle. If you own an expensive house and are wealthy, your needs may exceed those of less well-off individuals.

To determine how much additional living expenses coverage you need, plan a week-long staycation. Where would you stay, and where would you eat? Find out how much seven nights at a hotel that meets your standards costs, and how much eating out at restaurants that you like would be for a week. To figure out how much daily additional living expenses coverage you need, add your hotel and meal costs together, and then divide by seven.

Because you arrived at this figure by calculating the costs of a hotel and meals that you'd be comfortable with, it will accurately reflect the costs of remaining in town if your home becomes uninhabitable.

Finding Coverage That Meets Your Needs

One you know how much additional living expenses coverage you need, contact an independent homeowners insurance agent in your area. An independent agent can help you compare high-value homeowners insurance policies that have daily additional living expenses coverage limits that are equal to or greater than the daily amount you calculated. Because independent agents aren't committed to serving just one insurance company, they can show you all the policies that meet your coverage needs and help you find the one with the lowest premiums. Click here to learn more about homeowners insurance.