When you purchase homeowner's insurance, you might assume that it will simply pay for damages done to your home. However, there are several other things that are covered by a homeowners insurance policy that can be very useful in an emergency, such as additional living expenses.

After a catastrophe, such as a fire or even a flood under some policies, you may not be able to stay at your home until necessary repairs are made. However, you'll have to find another place to stay until you are able to return to your home. Fortunately, the "additional living expenses" portion of your homeowner's insurance policy covers this.

1. All Sorts of Expenses are Covered

You may be able to rent an apartment and the homeowners insurance will pay for the rent. If it's more practical for you to stay at a hotel, the homeowners insurance will pay for your hotel stay. Homeowners insurance will even pay for restaurant meals, pet boarding, and even laundry expenses. Make sure to tally all of your expenses so that you can be reimbursed for them.

The additional living expenses are only meant for expenses that you incur as a result of the disaster. If you receive coverage for restaurant meals, the insurance policy might deduct the average cost of groceries to account for the fact that you'd otherwise be purchasing and using groceries. However, you won't have to worry about losing as much money as a result of the disaster.

2. Floods Might Not Be Covered

Many homeowner's insurance policies do not cover floods. Even for insurance that does cover floods, there are some policies that will not pay for living expenses. Therefore, you'll need to speak with your insurance provider to find out if you'll receive coverage for additional living expenses under the policy. 

In some cases, you might be forced to leave your home because of a mandatory evacuation. If the cause of the evacuation is covered by your homeowner's insurance policy, you'll be covered during the evacuation. For this reason, you'll want to make sure that all possible disasters you might face in your geographic region are covered. 

3. You Can Increase Your Coverage

There is typically a cap on the amount of coverage for additional living expenses. It is typically a percentage of however much your home is insured for. Therefore, if you would like more money for living expenses, increase the amount in which your home is insured for.