Understanding Loss of Use Coverage

Natural disasters are a fact of life in Montana. As a resourceful resident of Big Sky Country, you know the importance of planning in case tragedy strikes and your home is severely damaged or destroyed. There were 121 wildfires in the Treasure State between 2019 and 2020 and an estimated 137,800 properties are at high to extreme risk of damage from blazes. In 2017 alone, fires destroyed a jaw-dropping 2,134 square miles of the beautiful forests and highlands of this semi-arid region.

Montana is also prone to floods, winter storms, extreme heat and drought, earthquakes, landslides, and tornadoes. Not surprisingly, Big Sky Country is the 13th most natural disaster-prone state in the United States due to the 91 major weather-related calamities it has endured since 1953. And of course, natural disasters aren’t the only thing that can wreak havoc on your Billings area home. Plumbing mishaps, unsafe wiring, and pests can also render your home uninhabitable for weeks or even months, necessitating that you and your family find a temporary place to live. In the worst case, you may need to completely rebuild your home, which could take a year or more. If you’re out of your abode for any length of time, you’ll need a way to pay for temporary living quarters. This is where it’s crucial to plan by ensuring your homeowners’ insurance policy includes loss of use coverage.

How Loss of Use Coverage Can Help During Disaster Restoration

Also known as additional living expenses (ALE) or coverage D, loss of use coverage pays for additional costs you may incur if you can’t live in your home while it is being repaired or rebuilt. While homeowners’ insurance is not required by law in Montana, many lenders do require you to have it before purchasing a home.

These are the expenses that loss of use insurance pays for:

Temporary housing– This may include a hotel, motel, or rental property.

Moving expenses – If you need to store your household items or move them from one place to another, your loss of use coverage will reimburse you for these costs.

Laundry– If your temporary living quarters are a hotel, you’ll likely incur additional expenses from washing your clothes in the facility’s laundry room or at a laundromat.

Pet boarding – If you’re residing in a location that does not allow pets, you’ll need to pay for a boarding facility.

Restaurant bills– If you’re staying in a hotel or motel, you may need to dine out more often because you don’t have access to a kitchen.

Additional car mileage or public transportation Your temporary dwelling may be farther from your work, resulting in additional transportation expenses.

Loss of use coverage does not pay for costs that you were paying before the incident, such as your mortgage or child care expenses.

Getting Help With Restoring Your Montana Home

Ensuring your homeowners’ insurance includes loss of use coverage is one of the best ways to prepare for a catastrophe. When calamity does strike, you’ll be frightened, overwhelmed, and unsure where to turn. When it comes to repairing your property in the aftermath of a major disaster, time is of the essence. That is why you must contact an experienced disaster restoration contractor as soon as possible so they can help prevent any further damage and get you back in your home as soon as possible.

Alpha-Omega Disaster Restoration is the preferred local commercial and residential disaster restoration company serving south-central Montana including Billinngs, Billings West End, Billings Heights, Laurel, Red Lodge. Our team is dedicated to going above and beyond in every restoration job we perform. Alpha-Omega has deep roots in the local community and understands the challenges faced by Billings residents and business owners better than anyone else. We’ll also work with your insurance company to make the process as painless as possible. Let us know how we can help!