Does Renters Insurance Cover Displacement?

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   David G. Pipes, CLU®, RICP®

   Business Development Officer, T.D. McNeil Insurance Services, Fresno, California

   In California the standard HO-4 (tenant's policy) provides coverage D which provides additional living costs.  This coverage is designed to pay the additional amount a renter would have to pay to maintain a "normal standard of living" when forced to leave the premises because of a covered loss.  If you are paying $1500 per month rent and because of fire damage you must vacate while repairs are being made, and a comparable building is available and the rent is $2000 per month, the difference would be considered the additional amount you required to maintain your normal standard of living.

   Answered on February 20, 2014

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