Does Renters Insurance Cover Hotel Costs?
Renters insurance typically covers hotel costs under the additional living expenses portion of your policy.
Excellent
)
)
Written byDanny Smith
)
Licensed auto and home insurance agent
4+ years in content creation and marketing
As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.
Featured in
){kind=small}
)
Edited byBecky Helzer
)
Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
Updated
Reading time: 4 minutes
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
Advertiser Disclosure
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
Table of contents
Renters insurance protects your belongings from theft, fire, smoke, vandalism, and certain types of water damage. It also provides liability coverage if you accidentally injure someone or damage their property. And if your home becomes uninhabitable after a covered loss, your policy’s loss of use coverage can help pay for hotel costs.[1]
But renters insurance won’t cover hotel costs indefinitely, so it’s important to understand your policy’s limitations. Here’s what you need to know about how renters insurance covers hotel costs when a covered loss damages your home.
Get a Fast, Free Renters Insurance Quote
Protect your stuff and find affordable peace of mind
Secure. Free. Easy-to-use.
4.8/5 (7,669+ reviews)
When renters insurance covers hotel costs
Loss of use, or additional living expenses (ALE) coverage, is a standard part of renters insurance. If your home becomes unlivable after a covered loss, this coverage helps pay for hotel stays, meals, and other living expenses that exceed your normal living costs while your home is being repaired.[2]
These are some typical scenarios where your loss of use coverage may pay for a hotel stay:
Burst pipe
If a pipe bursts, flooding your apartment and causing significant damage, your policy may cover a hotel stay.
Fire damage
If a kitchen fire makes your home uninhabitable, your policy may pay for your hotel costs while your landlord repairs the damage.
Vandalism
If someone breaks into your apartment and vandalizes it, renters insurance may cover a hotel stay if your home is unsafe to live in.
Storm damage
If high winds break your windows or your roof caves in after a heavy snowfall, your policy may pay for your hotel costs while your home is repaired.
Mold remediation
If a covered water leak causes black mold, your policy may cover hotel expenses while the mold is removed.
When is a home considered uninhabitable?
Not every covered loss leaves a home uninhabitable. Insurance companies determine whether a home isn’t suitable to live in based on factors like safety, cleanliness, and access to essential utilities like heat and water. Your insurer will send an adjuster to inspect the damage and make these determinations.[3]
Some examples of what might cause a home to be uninhabitable include:
Flooding that leads to structural damage or dangerous mold growth
Fire that causes significant smoke damage or destroys parts of the home
Broken doors or windows caused by a break-in, exposing the home to the elements and security risks
Loss of electricity or heat, especially during extreme weather, making the home unsafe to stay in
Certain situations typically wouldn’t result in you having to leave your home, such as:
Minor smoke damage that doesn’t endanger your health
Cosmetic damage, like cracked walls or chipped paint, that doesn’t create a safety issue
Limited water access, such as when one faucet isn’t working but water is still available elsewhere in the home
Broken appliances, like a fridge or stove, that might be inconvenient but don’t make your home uninhabitable
When renters insurance doesn’t cover hotel costs
Renters insurance won’t always cover hotel costs when your home is damaged, even if you personally think your home is uninhabitable. Your insurer will determine whether your home is uninhabitable based on several factors, including how extensive the damage is and whether a covered peril caused it.
Some scenarios where your insurance policy won’t cover hotel costs include:
A peril not covered by your policy caused the damage. Your renters insurance won’t cover your hotel stay if a natural disaster like a flood or earthquake damages your home.
Your home is still habitable. If the damage is mostly cosmetic and doesn’t create a safety concern, your renters insurance won’t cover hotel costs. Your insurer will send an adjuster to determine whether the damage makes your home unlivable.
You choose to leave voluntarily. If an adjuster determines your home is still habitable but you choose to leave anyway, your insurance won’t cover your hotel costs.
What else renters insurance pays for
ALE coverage also pays for extra food and transportation costs. It may also pay for pet boarding, laundry services, and temporary furniture rental while you’re displaced after a covered loss.
Renters insurance covers only the costs that exceed your normal living expenses. It won’t pay your rent or cover the cost of your regular grocery runs, but it’ll reimburse you for restaurant meals if you’re unable to cook at home.
Find a Renters Policy Just For You
Customize your coverage and secure savings
Secure. Free. Easy-to-use.
4.8/5 (7,669+ reviews)
How to file a renters insurance claim for hotel costs
Follow these steps to file a renters insurance claim for hotel costs:
Document the damage. Take clear photos and videos to show the damage to your insurer. Keep all communication with your landlord, as well as emergency repair service receipts and other documentation.
Contact your insurer. Get in touch with your insurance company right away to start the claims process. Share relevant information, including photos or videos of the damage.
Review your policy and submit your claim. Check your policy terms to understand your coverage, then submit your claim following your insurer’s process.
Work with the adjuster. Your insurer will send an adjuster to inspect the damage and determine whether your home is livable or not. If it’s unfit to live in and a covered peril caused the damage, your insurance will likely cover your hotel costs.
Keep all receipts. Make sure to keep every receipt for your displacement expenses. These receipts will help your insurer determine your reimbursement amount.
Renters insurance and hotel costs FAQs
For more information about renters insurance and hotel costs, see the answers to some of the most frequently asked questions.
Does every renters insurance policy have loss of use coverage?
Yes. All renters insurance policies have loss of use coverage. Along with covering personal property and liability, renters insurance includes loss of use coverage as an essential part of the policy.
How long will renters insurance pay for you to stay in a hotel?
How long your renters insurance will pay for you to stay in a hotel depends on your policy. Some policies have dollar limits, while others have time limits. A common time range is 12–24 months, and the dollar limit depends on your chosen coverage limits. Ask about coverage limits when you’re getting renters insurance quotes.
Does renters insurance pay for a hotel room if there’s a power outage?
No. Renters insurance won’t automatically pay for a hotel room if there’s a power outage. A power outage alone doesn’t make a home uninhabitable, but if a covered event causes damage to your home that leads to an outage, your policy may cover hotel costs.
Does renters insurance cover other temporary housing, like an Airbnb?
In most cases, yes. Renters insurance covers other temporary housing — even if it’s not a hotel — if it’s comparable to your usual standard of living. But whether your insurance will pay for a hotel or an Airbnb depends on your policy.
Will renters insurance pay for a hotel if your rental home has bedbugs?
No. Renters insurance won’t pay for a hotel if your rental home or apartment has bedbugs. Infestations are a maintenance issue, which insurance doesn’t cover.
Sources
- Insurance Information Institute. "Renters Insurance."
- National Association of Insurance Commissioners. "What are Additional Living Expenses and How Can Insurance Help?."
- Insurance Information Institute. "Understanding the insurance claims payment process."
)
Danny Smith
Danny is a Brooklyn-based writer with a producer’s license for property and casualty insurance. A former editor at Insurify, he specializes in auto, home, and pet insurance. He works to translate his insurance expertise into digestible, easy-to-understand content for drivers, homeowners, and pet owners alike.
Danny has been a contributor at Insurify since March 2022.
Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
