Learn how to claim hotel and rental costs, what's covered, and how to maximize temporary housing claims after property damage.
Get Claim Command Pro →When your home is uninhabitable due to covered damage, your insurance policy's Additional Living Expenses (ALE) coverage pays for temporary housing. Understanding what's covered and how to claim these expenses ensures you're properly compensated.
Insurance covers the increased cost of temporary housing compared to your normal housing expenses. If you normally pay $1,500/month for housing but pay $3,000/month for a rental, insurance covers the $1,500 difference. This includes hotels, short-term rentals, extended stay hotels, or temporary apartments.
You must choose "reasonable and comparable" housing. This means housing similar in quality, size, and location to your home. A luxury hotel when you live in a modest home may not be covered. However, you're not required to choose the cheapest option—comparable quality is the standard.
Temporary housing coverage continues until your home is repaired enough to be habitable, subject to policy limits. Insurance companies often dispute when your home becomes habitable, trying to cut off coverage before repairs are complete.
Most policies limit temporary housing to 20-30% of dwelling coverage or 12-24 months. If you have $300,000 dwelling coverage with 20% ALE, you have up to $60,000 for all additional living expenses including temporary housing. Track your spending carefully.
Convenient for short-term displacement but expensive for extended stays
More cost-effective for longer periods, includes kitchenettes
Furnished apartments or homes, more comfortable for families
Fully furnished temporary apartments designed for extended stays
Proper documentation and timely claims ensure you're reimbursed for all temporary housing expenses.
Get guidance on documenting and claiming all temporary housing expenses you're entitled to.
Get Claim Command ProYou can spend what's "reasonable and comparable" to your home. If you live in a $2,000/month home, a $2,000/month rental is reasonable. A $5,000/month luxury apartment may not be.
Yes, but extended stay hotels or short-term rentals are often more cost-effective and comfortable for long-term displacement.
You can only claim actual expenses. If you pay family for accommodations, that may be covered. But you can't claim expenses you're not incurring.
Policies vary. Some insurers pay hotels directly; others reimburse you after you pay. Clarify payment procedures with your insurer upfront.
You're responsible for costs above your limit. This is why choosing cost-effective housing and tracking spending is important.