House Fire Forced Us Into A Hotel
The situation: A fire damaged our house and we can't live there during repairs. We're in a hotel and eating out. Will insurance pay for this, and how much?
Quick Answer
Additional living expenses, also called loss of use coverage, typically pays the extra costs of living elsewhere while a covered loss is repaired, such as a hotel or rental, extra food costs and similar expenses above what you'd normally spend. It has its own limit, and some policies also limit how long it pays, so keep all receipts.
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What Happened
The Garcias' kitchen fire left smoke damage through the house, and the contractor estimated six weeks of repairs. They moved into an extended- stay hotel at $140 a night, about $4,200 a month, and spent more on restaurant meals than they normally spent on groceries. Their mortgage payment continued as usual. Their insurer paid the hotel and the difference between their normal food costs and their restaurant spending, within the policy's additional living expense limit. It didn't pay the mortgage, which they'd have paid anyway.
Likely Relevant Policies
- Homeowners Insurance
- Renters Insurance
Potential Coverages
Additional Living Expenses (Loss of Use) High likelihood
Pays the extra cost of living elsewhere while a covered loss makes the home unlivable, within its limit.
Dwelling Coverage High likelihood
Pays to repair the fire and smoke damage to the house.
Personal Property Coverage Medium likelihood
Pays for belongings damaged by fire or smoke, subject to the policy's terms.
Possible Exclusions
- Costs you'd have had anyway, such as your normal mortgage or food budget, generally aren't extra expenses.
- Additional living expenses have a limit, and some policies limit the time period.
- If the cause of the damage isn't covered, the living expenses generally aren't either.
Questions That Determine Coverage
- What is your additional living expense limit, and is there a time limit?
- What were your normal monthly costs before the fire?
- Is the hotel or rental reasonable for your household?
- How long will repairs take, by the contractor's estimate?
Recommended Immediate Actions
- Make sure everyone is safe, and get the fire department's report.
- Call your insurer and ask how they want temporary housing handled.
- Keep receipts for all lodging, meals, laundry and mileage.
- Write down your normal monthly costs, so extra costs can be calculated.
Documents to Collect
- Fire department report
- Receipts for hotel, meals and other extra costs
- A record of normal monthly expenses
- Contractor's repair estimate and timeline
Common Claim Process
The insurer handles the repairs and the living expenses as parts of the same claim. Living expenses are generally reimbursed as you submit receipts, or advanced, depending on the insurer, for the reasonable extra costs above your normal spending, up to the limit.
Potential Outcomes
- Lodging and extra food costs are reimbursed within the additional living expense limit.
- Normal costs you'd pay anyway, like the mortgage, aren't reimbursed.
- If repairs run long, the limit or time limit can be reached.
Risk Prevention Tips
- Keep a home inventory and copies of documents away from home.
- Know your additional living expense limit before you need it.
Frequently Asked Questions
Does insurance pay my mortgage while I'm out of the house?
Generally no. Additional living expenses cover extra costs, not ones you'd have anyway.
Can I stay with family and claim the cost?
Policies vary; ask your insurer how it treats staying with relatives.
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The factual claims on this page were checked against these sources. Rules and figures change, so check the source itself if you need to confirm the current version.
- Home insurance guideTexas Department of Insurance
- What is covered by standard homeowners insurance?Insurance Information Institute (Triple-I)
Educational information, not advice: This scenario describes how a loss like this commonly goes, not how your claim will be decided. Coverage depends on your policy's wording, limits and deductibles, your state, and the facts. Confirm specifics with your insurer.