Generally speaking, renter’s insurance covers personal belongings kept at your rental place. Your policy would also cover personal liability, such as when someone gets hurt in your rental place. In this article, we will explore the question, “does renter’s insurance cover a hotel stay?” A renter’s insurance policy will pay for a hotel only when named perils make it impossible for you to stay at your current residence. For example, if a pipe breaks in your apartment, your renter’s policy would cover water damage to your items, while covering a hotel stay until your landlord can make repairs to the property. It’s worth noting that your landlord does not have any obligation to pay for a hotel stay unless it’s stipulated in the lease. As such, your landlord is not liable to pay for a hotel even if they are at fault for the incident. Moreover, a landlord’s policy doesn’t generally reimburse tenants for any expenses. Therefore, tenants must have their policy.
When Does a Renter’s Insurance Policy Cover a Hotel Stay?
Renter’s insurance policies cover what is known as “loss of use.” This term refers to the tenant’s inability to safely live in the rental property. Therefore, the renter’s policy covers loss of use under the specific conditions identified in the named perils. Here are examples of named perils:
• Fire
• Water damage due to leaking or appliances
• Vandalism
• Natural disasters
• Damage to plumbing, heating, or gas
• Riots
It’s important to determine the perils covered in the policy. For instance, most policies don’t cover flooding. Therefore, you would not be covered for your items nor a hotel. Depending on where you live, you might want to include additional named perils. This may drive up the cost of the policy, but provide you with peace of mind.
• Fire
• Water damage due to leaking or appliances
• Vandalism
• Natural disasters
• Damage to plumbing, heating, or gas
• Riots
It’s important to determine the perils covered in the policy. For instance, most policies don’t cover flooding. Therefore, you would not be covered for your items nor a hotel. Depending on where you live, you might want to include additional named perils. This may drive up the cost of the policy, but provide you with peace of mind.
When Does a Renter’s Policy Not Pay for a Hotel?
There are circumstances in which your renter’s policy may not cover your hotel stay. In general, these are the reasons why your policy won’t pay for a hotel:
• Minor damage to the rental property such as a broken A/C unit, faulty appliance, or power outages.
• Perils not specified in the policy.
• Claim exceeding the policy’s limit. For instance, you choose to stay at a hotel that charges $100 a night, while your policy only covers $25 a night.
• Negligence on your behalf. Your policy may not cover you if you are determined to be at fault due to the negligent use of the rental property.
In some cases, your policy may only cover you up to a certain amount. You would then need to cover any additional expenses out of pocket. Depending on your policy, you may be reimbursed for gas and meals. However, more affordable policies won’t offer such coverage.
• Minor damage to the rental property such as a broken A/C unit, faulty appliance, or power outages.
• Perils not specified in the policy.
• Claim exceeding the policy’s limit. For instance, you choose to stay at a hotel that charges $100 a night, while your policy only covers $25 a night.
• Negligence on your behalf. Your policy may not cover you if you are determined to be at fault due to the negligent use of the rental property.
In some cases, your policy may only cover you up to a certain amount. You would then need to cover any additional expenses out of pocket. Depending on your policy, you may be reimbursed for gas and meals. However, more affordable policies won’t offer such coverage.
Would You Need To Seek Additional Coverage?
If you purchased a minimum coverage policy, you might want to consider getting additional coverage. For example, most policies don’t cover flooding and earthquakes. For instance, insurance carriers in areas such as California don’t generally offer coverage in case of an earthquake. Also, coastal areas like New York City don’t cover flooding. Thus, you would need to seek additional coverage to pay for your hotel in case of loss of use due to these circumstances.
Additionally, more expensive policies cover moving expenses should your current residence become completely uninhabitable. In that case, your policy would cover your hotel stay while you find a new place to live. Your policy would reimburse you for your items along with an additional payout to cover moving expenses like renting out a truck, hiring movers, or even airplane tickets.
Additionally, more expensive policies cover moving expenses should your current residence become completely uninhabitable. In that case, your policy would cover your hotel stay while you find a new place to live. Your policy would reimburse you for your items along with an additional payout to cover moving expenses like renting out a truck, hiring movers, or even airplane tickets.