Have you ever thought about where you would sleep if your house became unsafe?

Table of Contents

What is loss of use insurance?

You buy a home insurance policy. The policy protects your home from fire, wind, and other covered problems. Loss of use insurance helps pay for where you live while your home is fixed. Insurers call it “additional living expenses” or “ALE.” The coverage pays extra costs you did not have before the loss.

You will find this coverage inside your homeowner policy. You will not need a separate policy in most cases. The coverage kicks in when the home becomes uninhabitable because of a covered peril.

Why loss of use matters to you in Florida

You live in Florida. You face hurricanes, strong storms, and heavy rains. Repairs can take weeks or months after a hurricane. Contractors get busy. Building materials get scarce. You may not return home for a long time.

Loss of use helps you while you live away. The coverage pays for a hotel, a short-term rental, meals, and some other extra costs. You do not need to pay all costs by yourself if you use your coverage the right way.

What loss of use usually covers

Loss of use pays two main things: extra living costs and lost rental income if you rent part of your home.

Extra living costs: You pay for hotel, temporary rent, higher food costs, and laundry. You get costs that are higher than your normal costs.
Fair rental value: If you rent part of your home and a covered loss stops renters from living there, the insurer may pay the lost rent.

The coverage does not pay to fix your house. The coverage does not pay your mortgage. The coverage does not pay for damage that a different policy covers, like flood claims under the National Flood Insurance Program.

What loss of use usually does not cover

You must know limits and exclusions.

Flood damage: Flood often sits outside home policies. You will need separate flood insurance.
Routine mortgage or rent: The insurer does not stop your mortgage payments. The coverage pays extra living expenses, not repayments.
Future upgrades: The coverage does not pay for upgrades you want while you live elsewhere.
Acts not covered by your policy: If your policy excludes a cause, the loss of use may not apply.

How insurers set loss of use limits

Insurers set limits in two ways.

Percentage of dwelling limit: The insurer may give you a percent of your dwelling coverage. Common amounts are 20% or 30% of the dwelling coverage.
Time limit or dollar limit: The insurer may state a number of months or a dollar amount.

You must read your policy. You must know the limit and length. If your home takes longer to repair than the limit, you must pay the rest.

Simple example of limits

You have a home insured for $200,000. Your policy gives 20% for loss of use.

20% of $200,000 equals $40,000.
You can use that $40,000 for extra housing costs and food while you live away.

If your repairs cost six months and your extra costs use up $40,000 in three months, you will need to pay the rest yourself.

How loss of use pays

Loss of use pays only extra costs. If you paid $300 per month for food before the loss, and you spend $600 per month while living away, the insurer pays $300 per month for food difference. The insurer pays the extra cost for housing that you did not have before the loss.

You must keep records. You must keep receipts. You must show proof of payment and show why you needed the expense because of the covered loss.

Steps to make a loss of use claim

You act fast and stay organized. Simple steps help the insurer process your claim faster.

Stop danger and get safe. Your safety comes first.
Notify the insurer. Call your insurer and tell them you have a covered loss.
Document damage. Take photos and videos before you move things.
Keep receipts. Save hotel bills, rental agreements, and receipts for meals.
Track extra costs. Write down normal and extra expenses.
Keep short notes. Record calls with the insurer and the adjuster.
Ask for help. Hire a public adjuster if the insurer delays or offers too little.

How a public adjuster helps you

You have one chance to file the claim correctly. A public adjuster fights for you. A public adjuster works only for you. The adjuster reviews your policy. The adjuster documents damage. The adjuster argues with the insurer for proper payment. The adjuster can speed up payments and help you collect all the loss of use you deserve.

In Florida, you can call Otero Property Adjusting & Appraisals. Otero inspects your property free. Otero helps you understand your policy and the payments you should get. Otero only gets paid when you do. You can reach Otero at (850) 285-0405. You can visit Otero at 3105 W Michigan Ave, Pensacola, FL 32526 or online at https://oteroadjusting.com/.

Common mistakes people make with loss of use claims

People make simple mistakes that cost them money.

They forget receipts.
They accept the insurer’s first offer.
They move back too soon.
They mix normal costs with extra costs.
They do not hire a public adjuster when the claim is large.

You avoid these mistakes by tracking costs and calling a public adjuster. Otero can help you sort costs and argue with your insurer.

How to document your extra living expenses

You keep clear records. You open a folder. You label it with the claim number.

Keep hotel bills.
Keep rental lease or sublease agreements.
Keep grocery and restaurant receipts.
Keep receipts for pet boarding if you pay that because you cannot keep your pet at the home.
Keep storage receipts if you pay for storage due to the loss.
Keep mileage logs if you drive extra miles because your home sits far from your temporary lodging.

The insurer will ask for these documents. You must give these to your insurer or to your public adjuster.

Table: Common extra living expenses and whether they count

Expense type	Usually covered?	Notes
Hotel bills	Yes	Keep bills and proof of payment
Short-term rental	Yes	Keep lease and proof of higher cost
Meals	Partially	Insurer pays extra food cost above normal spending
Pet boarding	Often yes	If you must pay because you cannot keep pets at the temporary place
Storage	Yes	If you store furniture because home is uninhabitable
Mortgage payments	No	You must keep paying the mortgage
Home repairs	No	Paid under dwelling coverage
Flood damages (no NFIP)	No	Need flood insurance for flood losses

How long does loss of use last?

Policies will state the limit. The insurer may pay until:

The home is repaired to a livable state, or
The insurer reaches the limit.

The insurer will not pay forever. If repairs finish earlier, payments stop. If repairs take longer and you exhaust the limit, payments stop.

You should plan for possible delays. In Florida, storms cause long wait times. Builders may take months to repair damage.

How insurers calculate daily limits and actual payment

Insurers sometimes set a daily rate. They may say they pay up to $150 per day for a hotel. They may also use the percentage method we showed earlier.

The actual payment equals extra cost, not the whole cost. Example:

You paid $100 per night for a hotel before the loss? Unlikely, but suppose.
Now you pay $200 per night.
The insurer may pay $100 per night as extra cost.
If the insurer offers only $150 per night limit, you pay $50.

Always check the policy for a per-day cap and overall limit.

Example scenarios

You can read small stories to see how this works.

Scenario 1: Short fire damage

A small kitchen fire damages the kitchen. The fire inspectors say your home is safe to live in except the kitchen. You cook with a microwave. You stay home. You eat out more for a week. You save restaurant receipts. You file for a few days of extra food costs. The insurer pays little money for the short period.

Scenario 2: Hurricane roof and water damage

A hurricane damages your roof. Rain gets inside and damages drywall and floors. Your home needs major repairs. You cannot live there for three months. You rent a nearby apartment. You pay more for food because you eat out. You have storage fees for furniture. You have pet boarding for a short time. The insurer pays extra housing, meals, and storage until the house is repairable or until your policy limit ends. You call a public adjuster in Pensacola like Otero to inspect and document the damage and to make sure your insurer pays lost rental value and all extra expenses. Otero helps you collect more accurate payments.

Scenario 3: Flood without flood insurance

A storm brings flood waters into your home. You have no flood insurance and your homeowner policy excludes flood. The insurer denies your homeowner claim for flood. Loss of use from your homeowner policy may not apply. You must rely on federal flood programs or emergency aid. You call a public adjuster. The adjuster reviews the denial and looks for any other coverage that might still apply.

How public adjusters handle loss of use claims

A public adjuster does this work for you:

We read your policy and find the coverage you have.
We document damage with photos, estimates, and receipts.
We list your extra living expenses and explain them to the insurer.
We push for payments for lost rental income if needed.
We negotiate with the insurer to reach a fair result.

In Florida, time moves fast after a storm. You must act quickly. A public adjuster can speed up the documentation and talk to the insurer on your behalf. Otero Property Adjusting & Appraisals serves homeowners across Florida. Otero gives a free property inspection. Otero works on contingency, so you pay only when you get paid.

How to choose a public adjuster

You pick a public adjuster who has these features:

License in Florida.
Local experience with Florida storms.
Clear fee terms in writing.
References or reviews from other homeowners.
A clear plan to document and present your loss of use claim.

You can call Otero at (850) 285-0405 for a free review. Otero works in Pensacola and throughout Florida.

Table: Questions to ask a public adjuster

Question	Why ask it
Are you licensed in Florida?	Licensing shows you meet state rules
Do you work on contingency?	You pay only if you recover money
What is your fee?	You must know cost before you sign
Do you offer a free inspection?	A free inspection helps you decide fast
How many similar claims have you handled?	Experience means smoother claims

How loss of use fits with other coverages

Loss of use ties to your dwelling and personal property coverage. The insurer pays to repair your home separately. The insurer pays to replace or repair your damaged items under personal property coverage. Loss of use fills a different hole: your living costs.

You must check endorsements. You may have extra endorsements for:

Extended loss of use limits.
Additional time limits for hurricane losses.
Ordinance and law coverage for new code upgrades.

Ask your agent or adjuster if you need add-ons. Otero can help you find the right language in your policy in Florida.

Tips to save money and keep your claim clean

You can follow small rules to keep your claim neat and strong.

Keep detailed receipts and notes. Simple lists help.
Do not throw away damaged items until an adjuster or you photograph them.
Keep original documents and receipts. Make copies.
Follow local building rules when you repair.
Keep a daily log of extra expenses.

These tips help you get proper payment for loss of use.

Sample cost table for a temporary hotel stay (illustrative)

This table shows one example. Use it to think about costs.

Item	Normal monthly cost	Temporary monthly cost	Extra monthly cost
Housing (mortgage/rent)	$1,200	$2,100	$900
Food	$400	$800	$400
Laundry/cleaning	$50	$150	$100
Storage	$0	$200	$200
Pet boarding	$0	$150	$150
Total extra per month			$1,750

If your policy gives $40,000 for loss of use, $1,750 extra per month lasts for about 22 months. If repairs take longer, you may need to pay more.

When loss of use is worth it

Loss of use becomes very worth it when:

Your home becomes unsafe to live in.
Repairs will take months.
You have pets that you must board.
You cannot live with relatives or arrange cheap alternatives.
You rent out part of your home and you lose rental income.

You must balance premiums and likelihood of a big loss. In Florida, the chance of storms and long repair times makes loss of use coverage more valuable. The premiums are usually small compared with the cost to rent a place for months.

When loss of use might feel less useful

You may not use it if:

You have a strong plan to stay with family nearby for free.
Your home needs only a short repair.
You have flood-only damage and no homeowner peril applies.

Even then, you will often keep the coverage because storms can cause full-house damage. The protection offers peace of mind.

How losses from hurricanes can add extra costs

Hurricanes cause many extra costs beyond hotels:

Code upgrades: Your repair may need new parts to meet new rules.
Permit delays: Permits cost money and time.
Contractor price increases: High demand raises prices.
Travel costs: You may need to travel to manage repairs.

Loss of use may not pay for all code upgrade costs. Those upgrades usually fall under dwelling coverage or ordinance and law coverage if you carry that endorsement. A public adjuster like Otero will look for every possible coverage to help you receive all the money you deserve.

What to do first after you see damage

You move quickly and safely.

Make sure you and your family are safe.
Call 911 if danger exists.
Protect your home from further damage if you can without danger.
Call your insurer to report the claim.
Call a public adjuster if you want help. Otero gives a free inspection and will explain your options.
Take many photos and videos.
Save receipts for any spending.

Acting fast makes it easier to prove your extra living costs and to get payments.

How adjusters and insurers inspect loss of use claims

The insurer will send an adjuster. The adjuster will examine your house and your receipts. The adjuster will decide if the home is uninhabitable and how much money to pay for extra costs.

If you disagree with the insurer’s offer, you can hire a public adjuster. A public adjuster will present stronger documentation and argue for a fair amount. Otero does this work in Florida and will fight for your rights under the policy.

How to manage disputes with the insurer

If your claim gets a low offer, you do not need to accept it.

Ask for a written explanation.
Show your receipts and the log of extra costs.
Hire a public adjuster if needed.
Consider mediation or appraisal if the dispute continues.

Public adjusters will often resolve the dispute faster than you can alone. Otero will work to get the right payment and will only get paid if you recover money.

Frequently asked questions

Does loss of use cover flood damage?

No. Flood damage usually sits outside your homeowner policy. You must have flood insurance to cover flood losses. You should read your policy to see what you have.

Does loss of use pay my mortgage?

No. The coverage pays extra living expenses. You must continue paying your mortgage.

Does loss of use pay for upgrades or nicer housing?

The coverage pays reasonable extra costs you need because the home is uninhabitable. The insurer does not pay for luxury upgrades you choose that are unrelated to your needs. You must focus on reasonable expenses and keep receipts.

Do I need a public adjuster?

You can file a claim on your own. You may prefer a public adjuster if the claim is large or the insurer denies fair payment. A public adjuster will claim everything you deserve and help you avoid mistakes. Otero offers a free inspection and works on contingency. You pay only when you receive money.

How long does it take to get loss of use money?

The time varies. Insurers sometimes give an initial advance quickly for urgent needs. Full payment depends on documentation, the insurer’s review, and the size of the claim. A public adjuster can help speed the process.

How to prepare before a storm

You get ready now. Simple steps reduce stress later.

Keep a folder with insurance papers and policy numbers.
Take photos of your house and contents now.
Know your agent’s phone number.
Save the contact of a public adjuster like Otero in your phone: (850) 285-0405.
Keep important documents in a safe place.

This preparation helps you file a claim quickly and correctly.

Why working with a local Florida public adjuster helps

A Florida adjuster knows local rules. A local adjuster knows local builders and local costs. The adjuster knows how storms affect the area and how insurers respond after major events.

Otero Property Adjusting & Appraisals has experience with Florida storms. Otero inspects homes for free. Otero negotiates claims to get homeowners the money they need.

How Otero Property Adjusting & Appraisals works for you

You call Otero. Otero comes to inspect your home for free. Otero reviews your policy with you. Otero lists all covered losses and all extra living expenses. Otero talks to the insurer for you. Otero documents damage and extra costs. Otero only gets paid if you get paid.

You can visit Otero at 3105 W Michigan Ave, Pensacola, FL 32526. You can call (850) 285-0405 or visit https://oteroadjusting.com/.

Short checklist you can use after damage

Make sure you are safe.
Report the claim to your insurer.
Call a public adjuster for a free inspection.
Take many photos and videos of damage.
Keep all receipts for extra living expenses.
Save records of calls and emails with the insurer.
Do not throw away damaged items until you photograph them.

Final thoughts: is loss of use insurance worth it?

You live in a state with storms. Repairs often take a long time. Loss of use protects you from high temporary living costs. The money you pay in premiums is small compared with months of hotel or rental costs. You will feel calmer when you have coverage. You will collect extra living costs if you can show the expenses.

If your home becomes unlivable, you want someone who knows claims and will fight for you. You want a public adjuster who will work for you. You can call Otero Property Adjusting & Appraisals for a free inspection. You can call (850) 285-0405. You can visit 3105 W Michigan Ave, Pensacola, FL 32526 or go to https://oteroadjusting.com/.

If a storm or fire harms your home, you have help available. You do not need to face the insurer alone. You can keep your receipts and call an adjuster to get the extra living costs you need. You can rest and let professionals work to secure what your policy promises.

Is Loss Of Use Insurance Worth It?