Blog > Newsletter Content - Loss of Use

Newsletter Content - Loss of Use

Tue, 20 Jun 2017

There are many benefits to obtaining a personal condominium homeowners policy (known as an “HO-6”), though one of the best reasons to carry this coverage is for a protection known as Loss of Use.

As an owner, have you ever wondered who will be paying for your relocation expenses in the event of an unexpected property damage incident in your home? Look no further than the loss of use coverage item in your HO-6 policy. While many owners may assume that it will be the association’s responsibility to relocate them in the event of a loss that originates from the common area, this is not the case. Specifically, California Civil Code §4775 specifies that owners are responsible for costs of temporary relocation.

In addition to paying for lodging accommodations, the Loss of Use coverage item can also respond to reasonable costs incurred for meals out. But what happens if you have a renter? The renter’s policy can also have Loss of Use coverage, while the owner’s policy would have Loss of Rent, which protects the owner from the tenants not paying rent while they cannot live within the home following an insurance loss.

Insurance is important, and all owners should discuss and review their coverage annually with their insurance agents and/or companies. A small amount of premium buys a great amount of peace of mind in the event of an incident.

For more newsletter information, please contact Robert Gonzalez, CMCA at or 925.334.5700.