Does Renters Insurance Cover a Hotel Stay?

Your management company or landlord has insurance for the home or building you live in. This home insurance covers the building itself from perils like wind and fire damage. This is great for them, but it will not offer anything for you. Your peace of mind comes from renters insurance. 

Anything of substantial value needs to be protected. Just like an auto insurance policy protects your car and a watercraft insurance policy protects a boat, a renters insurance policy is designed to help protect renters living in a house or apartment. The typical renters insurance policy includes coverage that helps to protect you, your personal property, and your living arrangements after a covered loss. Yes, your living arrangements! That’s great news for renters whose homes are destroyed in a catastrophic event, like a fire.

Table of Contents

• What Is Loss of Use in a Renters Insurance Policy?
• Does Renters Insurance Cover Hotel Stays?
• What Are Things Renters Insurance Doesn’t Cover?

What Is Loss of Use in a Renters Insurance Policy?

If a peril puts you out of your home, you’re not stuck with major bills you can’t afford. If a power outage in your apartment results in losing all of the food in your refrigerator, a renters insurance policy will often cover you – as long as it wasn’t due to you not paying the electric bill of course! 

Loss of use coverage refers to when your renters insurance pays for additional living expenses you incur if your home is not suitable to live in due to a covered loss. 

As a simple example, let’s say your home is damaged by fire. You’re unable to use your kitchen to cook meals and therefore must get takeout or eat your meals at a restaurant. You spend $600 for the week on restaurant food, whereas you normally spend $200 a week for groceries. Your loss of use coverage will pay out the difference of $400. Insurance will only cover the difference, not all of your food.

If you have some items that made it out of the fire unscathed, your renters insurance will cover a storage unit while you’re in the hotel and your home is being repaired.

Does Renters Insurance Cover Hotel Stays?

With this example in mind, will renters insurance cover hotel stays if the entire apartment is unlivable? Yes! Temporary housing, including a hotel stay, is covered by your renters insurance. 

However, if you plan on staying at a certain hotel because you’re unable to live in your home due to a covered loss, check with your insurance agent first. You want to make sure there won’t be any reimbursement issues for that hotel. There are still coverage limits and your policy won’t cover you to live at the Ritz Carlton for a month!

What Are Things Renters Insurance Doesn’t Cover?

It’s important to note that renters insurance won’t protect you from all risks. For example, property damage due to floods won’t be covered. Water damages from flooding aren’t covered.

Not anything and everything is covered, even during natural disasters. Your insurance company will require you to submit copies of your receipts for review prior to issuing you a reimbursement check for personal belongings and hotel stays.

You can protect yourself affordably with renters insurance from Pronto Insurance. Contact us today to learn more about this coverage and what renters insurance includes, plus find the right coverage options for your living situation.