It's a crucial element of a typical homeowners insurance policy. It will cover the costs of living out of your home due to the damages it has taken in the course of a natural disaster or other insurance event. It will pay your hotel bills, meals and additional expenses you face while your house is being repaired.

The amount of this coverage will differ substantially between companies. The majority of standard policies will cover these expenses up to 20% of your overall coverage amount. A number of companies provide unlimited amount to cover such expenses but for a limited period of time.

In case your rent out a certain part of your property, this type of coverage will also pay out the lost rent you would receive from the tenant if the house wouldn't be damaged.

Make sure to consult with your insurance agent or company representative in order to clarify the amounts and duration of this coverage carried by your policy. Most companies allow modifying these conditions for an additional price.

Other important assets:

1. Your property
2. Your personal belongings
3. Expenses due to your home being damaged
4. Personal liability towards other parties