Can Homeowners Insurance Pay for an RV on My Property?

By Michael Wojciak, founder, Agile RV Housing

Yes, homeowners insurance often pays for it. When a covered loss such as a hurricane, fire, tornado, or burst pipe makes your home unlivable, the Loss of Use part of your homeowners insurance (Coverage D, also called Additional Living Expense) often pays for a fully set up RV on your own lot while the house is repaired. Your adjuster approves it, and we work with your adjuster. Agile RV Housing delivers the RV, a licensed electrical contractor connects the power, and we hook up the water and sewer. Delivery is about four days from approval to move-in. The price is $120 to $140 a night, tax included. Delivery and setup are priced separately for each property. We place RVs on homeowners' own property in all 48 contiguous states.

What does loss of use cover in home insurance?

Loss of use covers the added cost of living somewhere else when a covered loss makes your home unfit to live in. In the standard ISO homeowners form, Coverage D pays "any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living" (ISO HO 00 03, Maine Bureau of Insurance copy). State regulators give hotel bills and restaurant meals as examples (Alabama Department of Insurance, Florida Department of Financial Services). Those are examples, not a complete list. A fully set up RV on your own lot is another form of temporary housing, and adjusters commonly approve it as Loss of Use housing even when it is not the first option offered. The dollar and time limits on your declarations page still apply.

Who do I ask for an RV: my adjuster or the temporary housing agency?

Ask whoever handles your housing on the claim, which is either your adjuster or the temporary housing agency your insurer assigned. You choose who provides your temporary housing. Your insurer or its housing agency may suggest a provider, and the choice stays yours. Many insurers hand temporary housing to a national agency. Agile RV Housing is a preferred vendor with the national temporary housing agencies, including ALE Solutions, Alacrity, Sedgwick, CRS, and National Corporate Housing, and we work with all of them. If an agency handles your housing, ask your housing specialist for Agile RV Housing by name. If your adjuster handles housing directly, tell the adjuster you want an RV on your own property as your Loss of Use housing. You can also call Agile RV Housing first at (614) 655-4286, and we send the written estimate to your adjuster or agency for you.

Why does insurance need a written estimate before it approves an RV?

Insurance carriers require a written estimate from the housing provider before they approve an RV placement. The estimate shows the adjuster the nightly rate, the expected length of stay, and what delivery and setup include, so the adjuster can approve the full placement against your Loss of Use limit. Agile RV Housing sends the written estimate straight to your adjuster or housing agency.

The next step is written approval, and it comes before delivery. Written approval shows the carrier agreed to the RV as your housing, at that rate, before the stay began. Approval usually arrives as an email or letter from your adjuster or agency. Once it is in hand, delivery is about four days from approval to move-in. The main variable is scheduling the electrical contractor.

How does homeowners insurance pay for the RV?

How homeowners insurance pays for an RV on your lot depends on your adjuster. Most adjusters pay Agile RV Housing directly, so the housing cost does not run through your bank account. Some adjusters route payment through a temporary housing agency such as ALE Solutions, which then pays us. Occasionally the carrier pays the homeowner, and the homeowner pays us. Ask your adjuster which method applies before delivery, and make sure the written approval says so.

Keep a copy of the estimate, the approval, and every invoice. The Florida Department of Financial Services says ALE "is typically paid on a reimbursement basis" and tells homeowners to keep all receipts (Florida DFS). The Alabama Department of Insurance says the insurer "will need the receipts to reimburse you" (ALDOI).

Additional living expenses cash out, or an RV billed through your claim?

An additional living expenses cash out means the insurer pays you a lump sum for expected living costs and you arrange housing yourself. A direct-billed placement means your adjuster approves the RV and the carrier pays the provider. United Policyholders, a nonprofit for insurance consumers, suggests negotiating to "cash out" ALE limits to buy trailers or motor homes when there is nothing to rent, and says insurers "have not been offering this option but they should" (United Policyholders, After a Hurricane FAQs).

With a cash out, you handle the purchase or rental, the delivery, the hookups, and the receipts yourself. With a direct-billed placement from Agile RV Housing, we deliver and set up the RV, and payment runs through your claim. Ask your adjuster which route fits your claim.

Can the utility setup be part of the RV housing cost?

Yes. Ask your adjuster to include the utility setup in the written approval, so the RV on your lot is approved as one complete placement. An RV on your lot needs power, water, and sewer. At Agile RV Housing, a licensed electrical contractor always installs the power, and we handle the water and sewer hookup. Our written estimate describes the setup, so your adjuster sees the whole placement before approving it. Voss Law Firm lists "Costs of utility installation" among the additional living expenses homeowners can claim after a hurricane (Voss Law Firm). Our RV utility setup page explains the power, water, and sewer work and what your lot needs.

How long does loss of use coverage last?

Loss of use coverage usually lasts until your home is repaired, up to the time and dollar limits on your declarations page. The standard ISO form pays "for the shortest time required to repair or replace the damage" (ISO HO 00 03). Typical time limits, as insurers and regulators publish them:

• Florida Peninsula Insurance says HO-3 Coverage D commonly runs up to 24 consecutive months (Florida Peninsula).
• The Texas Department of Insurance says policies usually pay "up to 12 months or whenever you've used your 10-20%" (TDI).
• United Policyholders says standard policies typically provide two years, and that policies "often set time or dollar limits on ALE in the contract and sometimes both" (United Policyholders).

These figures are typical. Your declarations page controls your own limit.

How much loss of use coverage do I have?

Loss of use coverage in homeowners insurance is often set as a percentage of your dwelling coverage (Coverage A), and your declarations page shows your exact amount. Florida Peninsula Insurance says HO-3 Coverage D is commonly 10 percent of Coverage A (Florida Peninsula). The Texas Department of Insurance describes 10 to 20 percent (TDI). Citizens Property Insurance in Florida sets Loss of Use on its HW-2 wind-only policy at 10 percent of Coverage A (Citizens). As an example of the math, a home with $300,000 in Coverage A and a 10 percent Loss of Use limit has $30,000 for temporary housing and other added living costs. Some policies also set a time limit, so check both numbers.

Is additional living expenses the same as loss of use?

Additional living expenses and loss of use are used almost interchangeably, but loss of use is the larger coverage. In the standard ISO homeowners form, Coverage D is called Loss of Use, and it has three parts: Additional Living Expense, Fair Rental Value (rent you lose on a part of the home you rent to others), and Civil Authority Prohibits Use (ISO HO 00 03). Additional Living Expense is the part that pays for your family's temporary housing and other added costs while the home is repaired. Some insurers use "ALE" as the name for the whole coverage. Either way, an RV on your own lot is paid from the Additional Living Expense part of Loss of Use once your adjuster approves it.

Additional living expenses staying with family, and staying on your own lot

Additional living expenses pay the increase in what it costs your household to live while the home is repaired, so the amount depends on where you stay. Staying with family usually adds smaller costs, such as extra driving or meals. Ask your adjuster what they will reimburse while you stay with relatives, and keep receipts.

Staying on your own lot in an RV works differently. The RV is the housing cost, and the extra driving and restaurant meals that come with a distant hotel or a relative's house usually drop, because the RV has its own kitchen and sits at your own address. Your kids keep their school, and you are there when the adjuster and contractors arrive. Some families start with relatives and move to an RV on their lot once the repair timeline is clear.

Can I choose an RV on my lot if my insurer offers a hotel?

You can ask for an RV on your own lot even when a hotel is the first option offered. Your insurer or its housing agency can suggest housing, and the housing is settled between you and your adjuster. United Policyholders puts it this way: "The homeowner and insurer will negotiate exactly what the latter will cover" (United Policyholders). The standard ISO form measures Loss of Use against your household's "normal standard of living."

In our experience, most adjusters are glad to move a family out of a hotel and into an RV on their own lot. The family is home, has a kitchen, and is there to meet contractors. Ask for the RV, and ask your adjuster to put the approval in writing.

Does an RV on my lot use less of my ALE limit than a hotel?

Yes, for a family that would need two hotel rooms, an RV on your own lot draws substantially less against the ALE limit than an extended hotel stay. A unit at the top of Agile RV Housing's range, $140 a night with tax included, sleeps a family of up to five. That family needs two hotel rooms, and two rooms at typical ALE-approved rates cost more than $140 a night before meals, pet fees, and laundry. The RV also has its own kitchen. The Alabama Department of Insurance lists "Reasonable restaurant meals (if you're staying in a hotel room with no kitchen)" as an additional living expense (ALDOI), and a kitchen at home cuts that cost. Our RV housing cost page walks through the comparison.

Does flood insurance cover additional living expenses?

The standard National Flood Insurance Program (NFIP) policy does not include additional living expenses. Its exclusions list "Any additional living expenses incurred while the insured building is being repaired or is unable to be occupied for any reason" (44 CFR Part 61, Appendix A(1)). Temporary housing is paid from Loss of Use on your homeowners policy, or on your wind policy if wind coverage is written separately. When a storm brings both wind and water, file the homeowners or wind claim along with the flood claim. Your adjuster sorts out the damage and approves the housing. Some private flood policies do include living expenses, so check your declarations page if your flood coverage is private.

Can I put an RV on my property while my home is repaired?

Local rules decide where an RV can go, and many counties and cities have written rules that allow an RV on the lot of a damaged home while it is repaired. The details differ. Some require a temporary use permit, some set a time limit such as 6, 12, or 18 months, and most require power, water, and sewer connections. In Florida, after the Governor declares a state of emergency, state law stops a county or city from blocking one RV on the lot of a home made uninhabitable, for up to 36 months or until the certificate of occupancy (Fla. Stat. 125.023, Fla. Stat. 166.0335). Use our free zoning check: enter your address, and our staff confirm the rules within one business day. Gulf Coast rules are listed in our Hurricane Isaias RV rules by county.

Does my insurance company handle an RV differently?

The approval steps on this page are the same with every carrier: a written estimate, written approval, then delivery. What changes is the wording and who handles housing. Some carriers call the coverage Loss of Use and others call it Additional Living Expense, and some send housing through a temporary housing agency. Our carrier guides cover the wording and the housing process for five large carriers:

• State Farm loss of use
• Allstate additional living expense
• USAA loss of use
• Farmers loss of use
• Erie loss of use

For any other carrier, the same steps apply, and our ALE coverage guide explains the coverage in general. After a hurricane, our hurricane temporary housing guide applies these steps to storm claims.

Frequently asked questions