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Personal Lines Rising Prices The Potential Impact on Loss of Use Coverage 2

Loss of use coverage helps provide the peace of mind and financial assistance you need in the event you are suddenly displaced from your home. It’s sometimes referred to as Coverage D within your homeowners insurance policy that reimburses you for basic living expenses if a covered peril — such as burst water pipes, hurricane damage, or a house fire — damages or destroys your home, causing it to become uninhabitable.

Loss of use coverage reimbursement is unique to every person, family, and their situation. How much additional living expenses coverage you have is often based on limits in other parts of your policy. The loss of use coverage amount on a homeowner’s policy usually defaults to a percentage of your dwelling coverage limit, such as 20%. However, if additional expenses exceed that number, you become responsible for paying any amount that goes over the maximum.

Recently, rising costs have impacted Americans in a number of ways as inflation surges at the fastest rate in nearly 40 years. Prices are up in Florida for just about everything: housing, gas, groceries, and home repairs. Across the country, there has been a continued shortage in building materials from appliances to shingles, which has led to more expensive repairs and longer delivery times. The shortages in not only materials, but also labor have increased prices and caused lengthy project delays, so be prepared for it to take longer to get a job done. This trend is expected to continue into 2022.

With these high demands, supply shortages, and delays making home repairs more complicated and pricier, the best thing you can do is plan appropriately for the rising costs and potential delays you may experience. It is important to talk with your insurance advisor to ensure you are adequately covered, particularly considering the uncertainty around future costs for loss-of-use expenses. It is possible to increase this limit of coverage. Simply ask your trusted insurance advisor agent to provide a quote for additional coverage. The team at Gulfshore Insurance is here to assist and answer any questions you may have.

Gulfshore Insurance is a Naples, Florida based insurance agency specializing in home and homeowners insurance, car and auto insurance, boat and yacht insurance, property insurance, umbrella insurance, valuables insurance for fine art, jewelry, wine, and more. Navigating insurance requires an experienced and trusted insurance agent who understands your high net worth risks and exposures. Gulfshore Insurance services Naples, North Naples, Port Royal, Park Shore, Pelican Bay, The Moorings, Naples Beach, Marco Island, Bonita Springs, Sanibel Island, Captiva, Fort Myers, Sarasota, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.