The Skinny on Loss of Use/Loss of Rents
Coverage D on dwelling and homeowners’ policies is often misunderstood by insureds. In the first place, all policies do not include this coverage: flood does not have provisions for this loss in any policy. The loss will be paid by the company that covers the peril it insures. So, if it is your policy that excludes wind it will not cover loss from a wind event. That would be covered by the wind policy. Example: the roof blows off and you cannot live in it, only the wind policy pays that loss of use. You don’t get loss of use and loss of rents both. You don’t get to claim anything unless the damage was done to your house; not because you have no electricity, your road is torn up or the bridge is damaged and you cannot get to your house.
Those are civil disruptions. You cannot claim your potential loss of rents but only those that can be proven to have been reserved for the dates in question which have to be refunded because the house has been damaged. Don’t expect a policy to pay for a hotel because you had to evacuate in advance of a storm. As with any question regarding your coverages, read your policy and contact your Agent to find out about your policy specifics.
Thumbnail Info for Flood
The changing of flood maps requires that prospective buyers understand the impact of those changes on current and future flood policies
THE SKINNY ON FLOOD ASSUMPTIONS: The Pros and Cons
CURRENTLY UNDER CONSIDERATION: NO MORE ASSUMPTIONS
"Fixer Uppers"/"As Is-zers" Oh My!
Those who should consider the above:
Other noted considerations: