What Are Loss of Use Costs?
Loss of Use costs include any additional expenses you incur because you cannot live in your home. When ready, our Loti product suite will organize all of these for you, and they might include:
Temporary housing (hotels, rentals, or other accommodations).
Increased utility bills at your temporary location.
Costs for meals if you cannot cook at home.
Additional transportation or commuting costs.
Laundry or cleaning services.
Storage fees for personal belongings.
Step 1: Track Temporary Housing Costs
Document all expenses related to temporary living arrangements. Include:
Hotel bills or rental agreements, including security deposits if applicable.
Itemized receipts for additional fees (e.g., parking, pet accommodations).
Proof of payments, such as credit card statements or bank transactions.
Tip: In the notes section, include correspondence with landlords or hotel management to confirm the duration of your stay and associated costs.
Step 2: Record Utility Expenses
If utilities (e.g., electricity, water, gas, internet) are higher at your temporary accommodation, document:
Utility bills from both your damaged home and your temporary location to show the difference.
Receipts or statements confirming payments.
Tip: Use our Special Entries area to help with differences in utility costs.
Step 3: Keep Receipts for Food and Dining
If you’re unable to cook at your temporary location, keep detailed records of meal expenses, such as:
Receipts from restaurants, takeout, or delivery services.
Credit card statements showing related charges.
Tip: Track meal costs on Loti for all household members and exclude what you would normally spend on groceries to demonstrate the additional expense.
Step 4: Document Transportation Costs
If your temporary living situation increases your travel needs, gather:
Fuel receipts or mileage logs if you’re driving farther than usual.
Public transit receipts or invoices for ride-share services.
Parking fees or toll receipts.
Tip: Use our Special Entries area to help with differences in transportation costs.
Step 5: Include Laundry and Cleaning Costs
If you need to use external laundry or cleaning services, include:
Receipts or invoices for these services.
Proof of payment, such as bank or credit card statements.
Tip: Note the frequency of these expenses to justify their inclusion in your claim.
Step 6: Account for Storage Costs
If you need to store personal belongings while your home is being repaired, document:
Rental agreements or invoices for storage units.
Receipts for moving costs if belongings were transported to the storage location.
Tip: Keep an inventory of the items stored, as your insurer may ask for additional details.
Common Challenges and Solutions
Missing Receipts: If you don’t have receipts for certain expenses, use bank or credit card statements as alternative proof.
Disputed Costs: If the insurer questions certain expenses, provide context, such as why the service was necessary or why the cost was higher than usual.
Partial Coverage: Review your policy to understand any limits on Loss of Use coverage, and focus your documentation on covered expenses.
Why Accurate Documentation Matters
Thorough documentation is key to receiving proper reimbursement for Loss of Use costs. By clearly demonstrating the additional expenses you’ve incurred, you’ll provide your insurer with the information they need to process your claim quickly and fairly.
Final Thoughts
Gathering documentation for Loss of Use costs can feel overwhelming, but staying organized and proactive will save time and stress in the long run. At Loti, we’re here to help. From tracking expenses to submitting a complete and professional claim, our team provides expert support to ensure you’re fully reimbursed for your additional living costs.
Contact us today to learn how we can assist you in managing your claim and getting back to normal.