NY Home Insurance and Loss of Use Coverage

Jan 23, 2020

23 Jan
Homeowners Insurance, The Ins & Outs of Insurance, Understanding Insurance

NY Home Insurance and Loss of Use Coverage

by Robert Marsalona

NY home insurance policies offer a variety of coverages guaranteeing reimbursement  for damage done to your home as long as it is covered under the policy. But, what happens when a loss is so catastrophic that your home becomes inhabitable? Who is going to pay for those additional living expenses incurred from  the loss? Luckily, most, if not all, NY home insurance carriers include loss of use coverage.

How Does Loss of Use Cover My Home in NY?

The swift answer is, it doesn’t. Loss of use does not cover physical damage to the dwelling or the contents of the home. Loss of use would be in effect when a loss covered under your home insurance occurs and you are not able to access your home. Additionally, it may cover you in cases where government prohibits use of the premises for an extended period of time.

What Does Loss of Use Pay For?

Loss of use insurance coverage will cover any additional expenses incurred due to the loss under your NY homeowners insurance policy and inability  to use the home. For example, if you have a house fire and are forced to live at a hotel, your NY home insurance company will help pay for this expense. Loss of use does not apply for normal expenses, that is, for things that you would still be paying for regardless of the situation. For example, any utility bills would still be your responsibility. However, coverage would account for any increase in a regular expense. Let’s say, due to having to stay in a hotel your commute to work is further and the amount you are spending on gas increases. Your NY home insurance company will cover the difference.

In certain situations it may also cover loss of rental earnings if the portion of the home that is rented is also inhabitable. This is called “fair rental value”, meaning the fair rental value of that part of the residence premises rented to others or held for rent by you. If, due to a covered loss on your NY home insurance you are being reimbursed for loss of rent, the amount will equal the fair rental value less any expenses that do not continue while the premises is not fit to live in.

How Does My NY Home Insurance Reimburse Me For Loss of Use?

During the time of the loss, be sure to hold on to all of your receipts so you can submit them to your NY home insurance carrier and they can review the information to calculate your payout. Depending on the insurance company, the method to calculate your “normal living expenses” may differ. Nonetheless, there must be some barometer with which to measure the increased expense. You may be required to submit proof of your regular monthly expenses to your NY home insurance company. In most cases there will not be reimbursement for something that is not considered to be a necessary and reasonable expense. In other words, you won’t want to live frivolously during this time with the expectation that all will be paid for without question. Furthermore, you should be aware that in most cases your NY home insurance company will reimburse you after an expense is incurred rather than upfront.

Keep in mind that this article is broad in its discussion of NY home insurance and loss of use coverage, and each and every case can be different. Your coverage depends on the situation at hand and the specifications of your policy as outlined in your policy booklet. For further information, please contact your insurance carrier.

Want to Make Sure Your NY Home is Covered in the Event of a Catastrophic Loss? Contact TSC>Direct!

TSC>Direct has been providing first time home buyers, renters and those living in a condo or co-op association in New York with affordable insurance since 1986. We provide coverage in New York City, Brooklyn, Queens, The Bronx, Long Island, Staten Island, Westchester and Orange counties. Our insurance company communicates directly with our customers and we offer competitive NY homeowners insurance rates. Get a free online quote for affordable NY home insurance or call TSC>Direct today at  1-800-JOIN-NOW  (800-564-6669)!


This article contains content from:



For New Yorkers, by New Yorkers
Since 1986, we have offered the most competitive rates in auto and homeowner's insurance in the New York metropolitan area. Why should everything cost more just because we live in the greatest city in the world? Take 2 minutes and get a free quote today.

As  of December 31, 2019 Tri-State Consumer Insurance Company, known by its trade name, TSC>Direct, had admitted assets of $109,367,801 and policyholders surplus of $49,936,957.  Its total liabilities were $59,430,843 including $38,313,944 in reserves.

2020 All Rights Reserved. Tri-State Consumer Insurance Company, a division of Tri-State Consumer Inc., 100 Jericho Quadrangle, Suite 124, Jericho, NY 11753-2702
Providing auto and homeowners insurance to: New York City, Queens, Manhattan, Brooklyn, Bronx, Staten Island, and Nassau & Suffolk Counties in Long Island. Providing homeowners insurance also to: Westchester County and Orange County NY.