Does Renters Insurance Cover Temporary Relocation?

The unexpected can strike at any time, leaving you without a place to live. But what if your renters insurance could help with that? Most renters insurance policies cover temporary relocation expenses, sometimes called additional or temporary living expenses. This can apply if your rental unit is damaged and you need to be relocated until repairs can be completed. In some cases, a permanent relocation could be necessary. This coverage can help pay for the extra expenses you incur as a result of relocating after a covered loss.

We’ll help you understand how this coverage works and give a few examples of what it can do for you in the event you need to relocate from your apartment to temporary housing.

How Do Temporary Living Expenses Work?

Also called loss of use coverage, temporary living expense coverage helps if your apartment becomes unlivable due to a covered loss, like a fire or tornado, and you need to relocate while it’s fixed. These expenses can include things like a hotel, food, laundry and more, and they can add up to a significant amount that you may pay out of pocket without insurance.

To receive the funds from your insurance company to cover temporary relocation, you’ll need to file a claim on your renters insurance. You’ll also need to keep all your receipts so you can show your agent how much your temporary living expenses cost. Usually, your insurance company will reimburse you for your expenses, rather than hand you a lump sum. In the case of reimbursement, you’ll need to continually submit receipts to your insurance to continue receiving your funds.

Keep in mind, your renters insurance has coverage limits for things like temporary living expenses that are typically a percentage of your overall liability or personal property coverage. Check with your agent to better understand your individual policy’s coverage limits.

What Do Temporary Living Expenses Cover?

Typically, temporary living expense coverage pays for those expenses you wouldn’t normally have if you could live in your home. So, if you need to pay for a hotel room or are forced to eat at restaurants more because you don’t have kitchen access, those are additional expenses that would be covered by your renters insurance.

Take a look at a few different kinds of additional living expenses that loss of use coverage helps pay for:

Temporary housing

Through your renters insurance, you’re entitled to housing that is comparable to your original living situation but not housing that exceeds it. If you were originally living in a studio apartment, you can expect to be reimbursed for a single hotel room, studio apartment short-term rental or something similar.


Generally, if your option is to stay somewhere you won’t have access to a kitchen, you can be reimbursed for the cost of eating at restaurants while you have been temporarily relocated. This is because it’s considered an additional expense.


If you've been temporarily relocated and have to use a laundromat to do your laundry when you usually had access to an in-unit washer and dryer, that could qualify as an additional expense.

Does renters insurance cover moving expenses?

Your renters insurance covers your belongings by replacing them if they're damaged as a result of a covered event. While most rental insurance plans don't cover moving expenses directly, renters insurance can cover damage to your property during a move in certain situations.

Renters insurance temporary housing allowances should be reviewed with your American Family Insurance agent for better understanding.

Get Temporary Relocation Coverage With American Family Today

Temporary living expense coverage is a great resource to have available should the unexpected happen. Connect with your American Family Insurance agent to understand exactly what kind of coverage limits will help you protect what matters most.

How would you rate this article?

Related Topics: Renters , At Home , Insurance Needs