Insurance Policy

When your home is damaged and uninhabitable due to an event like a fire, securing a temporary place to live is essential. However, one question that often arises is whether the personal property in your temporary residence is covered by your current homeowner’s insurance policy. Specifically, if you’re staying in a temporary apartment while your home is being repaired, do you need a separate policy to protect your belongings?

Does Your HO-3 Policy Cover Your Belongings in a Temporary Residence?

If you hold an ISO HO-3 homeowners policy, you may be covered for personal property in a temporary residence under certain conditions. The 1991 edition of the HO-3 policy includes a limitation stating that personal property usually located at the “insured’s residence, other than the residence premises,” is only covered up to 10%. This typically applies to property in secondary residences or vacation homes.

However, in the case of temporary relocation due to repairs, this limitation is not triggered. The key phrase “usually located” doesn’t apply when your personal property is temporarily moved because your primary home is being repaired. In essence, your belongings are not “usually located” at the temporary residence—they’re there because repairs are underway at your primary home.

The 2000 Edition and Beyond: Clarification on Temporary Relocation

To remove any doubt, the 2000 edition of the ISO HO-3 policy added specific language addressing this situation. The policy now explicitly states that the limitation on personal property does not apply if the property is temporarily moved from the insured residence because the home is being repaired, renovated, or rebuilt and is not fit to live in or store belongings in.

In other words, as long as your home is under repair and uninhabitable, your existing HO-3 policy will typically cover the contents of your temporary residence without the need for a separate renters policy (such as an HO-4 policy). This exception ensures you don’t have to buy additional coverage for personal property stored elsewhere while your primary home is being repaired.

What About Renters Insurance (HO-4)?

While your HO-3 policy should cover your contents in a temporary residence due to the repair work, it’s always wise to check with your insurance provider. If you’re staying in a rental for an extended period, or if there are any special circumstances regarding your temporary housing, you may be advised to obtain additional coverage with a renters policy (HO-4). This policy would offer coverage for your personal belongings, as well as liability protection in the rental space.

In most cases, your current HO-3 homeowners policy will cover the contents in your temporary residence while your home is being repaired. The important exception to the limitation on personal property applies to property temporarily moved due to repairs. However, always consult your insurance provider to confirm your coverage details and avoid any surprises during your temporary stay.