What is loss of use coverage?

What is loss of use coverage? Last week, Miami Beach authorities evacuated all 164 units of a condominium, saying the structure was unsafe. Residents had just a few hours in the afternoon to collect their personal belongings and leave the building.
Some went to their relatives’ houses, others looked for a hotel to live in until the problems of the condominium are solved. In the last year, several buildings in South Florida have been evicted. The question that many ask themselves is: Does the insurance cover my stay in a hotel?
As always, the answer is: it depends. If the condominium owner has a standard insurance policy, also known as HO-6, it should include loss of use coverage that protects you in case you have to pay for a hotel because you cannot occupy your home for a period of time due to damage protected in the policy. As a general rule, loss of use coverage is 20 to 30% of the home’s coverage -dwelling coverage-. That is, if you have a dwelling coverage of $100,000, your loss of use policy should be between $20,000 and $30,000.
That means your insurer should cover the rental costs you and your family incur during home repairs. Generally, for a period of time specified in the contract. For example 24 months.
It is important to note that the association’s insurance may cover the owners’ relocation if the damage is caused by a community problem. For example, if a gas valve burst or there is a danger of collapse due to irregularities in the condominium structures.
To be sure if your policy includes loss of use, check with your Univista Insurance agent to determine if you have enough coverage. What is loss of use coverage?

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