How to buy home insurance – part 7

At the end of a busy day at work, you arrive home and find 2 inches of water in your home.  What if it isn’t standing water but you’re home is on fire or it’s been struck by a natural disaster such as a hurricane or tornado?

There are many types of claims that happen that could keep us from being able to live in our home for a few days, weeks or much longer.  Examples that come to mind include homes lost in,

  • The tornados that struck north Texas this spring
  • The fires that struck Bastrop and other parts of the state last year
  • Hurricane Ike and the damage it did to Galveston in 2008

A near total or total loss could mean having to find alternate housing for over a year.  Could you afford to pay your mortgage payment and rent too?  The good news is your home policy should have coverage to keep you from having to pay both!

Loss of use

Loss of use coverage is built into every admitted carrier’s Texas home policy.

  • It’s designed to pay for a temporary housing caused by a claim
  • The temporary housing need could be days, weeks, months or longer
  • The amount of coverage provided for in most home policies is on average 20% of the dwelling amount (amount of coverage on the home)
  • If a home has a dwelling amount of $200,000, then the loss of use coverage is would be $40,000
  • Some companies provide for an amount equal to the home’s value

Very few homeowners I’ve ever reviewed a quote with are aware they’re getting this coverage.  Everyone, though, is grateful for having it as it can be a huge help financially at a time when that should be the last thing on your mind!  Have you ever used this coverage?  Share your story on our Facebook page at or in the comments section.  We’ll all learn something!

Evie Wise
Evie Wise


Evie Wise
Evie Wise

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