When consumers think about insurance, they usually have in mind such things as how much coverage they are purchasing, what the policy will or will not cover, and how much their monthly premiums will be. The most pressing thoughts center on the amount of damage that an insurance policy covers in case of an accident or a natural disaster, but rarely do people remember that insurance policies have an optional benefit which covers loss of use.
Loss of use insurance benefits can cover almost anything that can be insured, including homes, cars and other property, such as equipment and farms. In addition, loss of use insurance coverage helps policy owners to deal with the long-term effects of instances such as a car accident, or a flash flood. After all, a driver can’t use an automobile if it is damaged in a crash, nor can a home be safe to live in after it has been flooded.
Though there are certain limits to how much an insurer will pay or how long a period of time it will last, loss of use coverage acts like a cushion to the consumer; it pays for the costs of renting a car while the owner’s vehicle is either being fixed or replaced, or for extended stays in a hotel or apartment until a dwelling is repaired or rebuilt.
Automobile insurance consumers should ask their agent if their current insurance company offers loss of use coverage. Not every company offers this benefit, however, so it is a good idea to ask which insurers in the state of Texas offer it. For more information on Texas auto and home insurance providers, visit the official Texas Department of Insurance website.