It might. Many homeowners policies include loss of use coverage, also called additional living expenses (ALE), which can help pay for a hotel or rental when a covered loss leaves your home unfit to live in. Whether it applies to your rebuild, how much it pays and for how long all depend on your policy and your adjuster. Ask before you book, and keep every receipt.
This question usually comes up after the water is cleaned up and the house is dry. A burst pipe, a toilet overflow, a failed water heater, or a leaking dishwasher, washing machine or refrigerator supply line can take out a kitchen or the only full bathroom. Then the rebuild starts, and you're wondering where you'll sleep and cook while the drywall, floors and cabinets go back in.
What Is Loss of Use Coverage?
Loss of use is the part of a homeowners policy that can help with the extra costs of living somewhere else while your home is repaired. It's usually listed separately from the coverage for the structure itself, with its own limit. Some policies cap it at a dollar amount, some at a time period, and some at whichever comes first.
The key word is extra. The Kansas Insurance Department explains that ALE "covers only the difference over and above your normal household expenses." If you normally spend a certain amount on groceries and now you're eating every meal out, the policy may look at the difference, not the whole restaurant bill. Your mortgage payment doesn't stop either, so it generally isn't part of the calculation.
Does It Cover the Rebuild Phase, Not Just the Cleanup?
Often the question isn't the first few nights after the leak. It's the weeks when your kitchen has no cabinets or your bathroom has no floor. Many policies tie loss of use to the time reasonably needed to repair the home, which can include the rebuild. That's a policy question, though, and adjusters look at it case by case.
A few things tend to matter:
Whether the home is livable. Losing your only bathroom or your whole kitchen is different from losing a guest room in the basement.
Whether the loss is covered. Loss of use generally follows the main claim. If the damage itself isn't covered, living expenses usually aren't either.
Your policy's limits. A time cap or dollar cap can run out before the rebuild is finished.
Talk to your adjuster before you leave the house. Ask what's covered, what the limit is, and whether you need approval for a hotel or a short-term rental.
What Kinds of Costs Might Count?
Policies vary, but homeowners commonly ask about hotel or rental costs, the extra cost of eating out, added mileage to work or school, laundromat trips and pet boarding. Some insurers pay as you go, some reimburse you after you send in receipts, and some set up lodging directly.
Keep a simple folder or phone album with every receipt, and write a short note on each one. That makes it easier for your adjuster to see what was extra and why.
How Can We Help You Get Home Sooner?
We can't decide what your policy pays. What we can do is give you and your adjuster a clear picture of the rebuild. We prepare detailed reconstruction estimates and work with your adjuster to explain the repairs needed. When the scope is in writing, it's easier for everyone to plan around how long the work is likely to take.
We also think about order. If the kitchen or your only bathroom is the reason you've moved out, we can talk with you about getting those spaces usable early, when the scope and materials allow it. Cabinets, countertops and some flooring have lead times, so we order early when we can. If more damage turns up behind a wall, we document it for your adjuster right away so it doesn't stall the job. Our post on what happens when more damage is found behind the wall explains how that works.
What About a Basement Sewer Backup?
A sewer backup in a finished basement can make the lower level unusable, and sometimes the whole house feels off-limits until it's cleaned up and rebuilt. Coverage here is less predictable. Sewer backup coverage is often a separate endorsement with its own limit, and many standard policies don't include it. If the backup itself isn't covered, loss of use for it may not be either. Check your policy and talk with your adjuster before you make plans.
What Do We Do, and What Don't We Do?
We rebuild after the water is cleaned up and the structure is dry. That means drywall, flooring, cabinets, paint and trim. We don't repair plumbing, pull water or run drying equipment, and we don't handle your claim or negotiate your coverage. Your plumber fixes the leak, a drying company handles the water, and we help put the affected areas back together.
Frequently Asked Questions
Should I book a hotel before I call my adjuster?
If you can't safely stay that night, do what you need to do and keep the receipt. For anything longer, call your adjuster first so you know what your policy allows.
Can I stay with family and still use loss of use?
Some policies may consider reasonable extra costs even if you stay with relatives, like added mileage. Ask your adjuster how your policy handles it.
Can I stay home during part of the rebuild?
Many families do, especially when a working bathroom and some kitchen access are left. Our guide on what to expect during a rebuild covers what daily life looks like with a crew in the house.
Does Flood Rewind pay for my hotel?
No. Living expenses are between you and your insurance company. We can give you a written scope and keep you updated on the schedule so you can share that with your adjuster.
Rebuilding After a Plumbing Leak in Overland Park?
We help homeowners in Overland Park, Olathe, Lenexa and Lee's Summit put their homes back together after burst pipes, toilet overflows and other indoor plumbing failures. We'll look at what needs rebuilding, put the scope in writing and keep you posted so you can plan your time away from home. See how the process works on our what to expect page.
Prefer to talk it through first? Call (913) 732-7220, Monday through Friday, 8 AM to 5 PM.