Home Uninhabitable? A Step-by-Step Insurance Housing Guide

It’s the sound you hear in the middle of the night—a faint drip, drip, drip that quickly becomes a torrent. Or it’s the smell—that musty, unmistakable scent of mold spreading behind a wall. It isn’t always a catastrophic fire that makes a home unlivable. More often, it’s the slow-motion disaster of a burst pipe, a failed sump pump, or a serious mold infestation.

Whatever the cause, the result is the same: your safe space is suddenly off-limits, and your family is displaced. Your mind is racing, a chaotic checklist of what-ifs and what-nows. The most pressing question of all: where will my family live while our home is being repaired?

This guide is for you. It’s a calm, practical, step-by-step plan to help you navigate the entire temporary housing process, from the first call to your insurance company to the day you finally move back home. We’ll demystify the insurance process, explain your rights as a policyholder, and show you how to find a stable, comfortable place for your family to land.

A concerned homeowner on the phone looking at water damage on their ceiling from a burst pipe

Step 1: The First 48 Hours – Your Immediate Action Plan

Before you can think about repairs, you need to manage the immediate crisis. Focus on these critical first steps.

1. Prioritize Safety

Your first priority is to make sure everyone is safe. For issues like water or mold, this means preventing exposure, especially for children or family members with respiratory issues. Do not attempt major cleanup yourself. Wait for professional mitigation and restoration crews. For fires or structural damage, do not re-enter your home until it has been officially declared safe by emergency services.

2. Contact Your Insurance Company Immediately

As soon as you are in a safe place, call your insurance agent or the 24/7 claims number. The sooner you call, the sooner they can start the process. When you call, use this specific phrase: “My home has become unlivable due to a covered event, and I need to start a claim and activate my Additional Living Expenses coverage.”

This specific phrase triggers the part of your policy that will pay for temporary housing. Your insurance company will assign a claims adjuster to your case, who will be your main point of contact.

3. Document Everything

From this moment forward, you are creating a record for your insurance claim. Keep every single receipt. Start a notebook or a folder on your phone and track all your expenses—food, lodging, clothing, even mileage. As this guide to documenting home damage explains, taking extensive photos and videos of the damage before anything is moved or cleaned up is critical.

An insurance adjuster inspecting the exterior of a home with a clipboard to assess damage

Step 2: Understanding the Process & Your Right to Choose

This is where many families feel lost. Who finds the temporary housing? Do I have to accept the first cheap hotel they offer? The answer is no. You have more power than you think.

Your Additional Living Expenses (ALE) coverage (also called “Loss of Use”) is your lifeline. It’s designed to cover the costs you incur above and beyond your normal monthly expenses. According to the National Association of Insurance Commissioners (NAIC), this coverage is a standard part of most homeowner policies. However, the process of using it can happen in a few different ways, and it’s crucial to know your options.

How is Temporary Housing Arranged?

Based on industry practices and guidance from consumer advocacy groups, there are generally three ways you can secure temporary housing:

The Insurer-Directed Path: Your adjuster may refer you to a large, third-party insurance housing company. This company then presents you with housing options. This is a common and often convenient route, but you are not obligated to accept their options if they don’t meet your needs.
The Reimbursement Path: You find your own temporary housing, pay for it upfront, and submit the receipts to your adjuster for reimbursement. This gives you maximum control but requires you to have the available funds to cover costs initially.
The Proactive Path: You proactively search for a housing solution that fits your family’s needs and present it to your adjuster for approval before signing a lease. The housing provider can then work with your adjuster to arrange for direct billing to the insurance company. This is often the best of both worlds, combining choice with convenience.

Your Right to “Comparable Housing”: A critical phrase in most policies is that you are entitled to housing that is “comparable” to your current standard of living. As the nonprofit United Policyholders notes, if a large family is crammed into a small apartment, that is an important factor to push back on. You have the right to reject unsuitable options and propose alternatives that better match your family’s normal life.

This is where you can take control. By finding a provider that specializes in high-quality, furnished homes, you can present your adjuster with a solution that works for your family and often streamlines the process for them as well.

Step 3: Choosing the Right Temporary Home

Now that you know you have a choice, what should you look for? The key is finding a solution that minimizes disruption for your family.

Housing Option	Best For	Pros	Cons
Hotels / Extended-Stay	Very short-term (1-2 weeks)	Quick to book; no utility setup.	Cramped for families; no full kitchen; feels transient; expensive long-term.
Unfurnished Apartments	Very long-term displacement (9+ months)	Can feel more permanent.	Requires a long, inflexible lease; you have to move/rent all furniture and housewares.
Vacation Rentals (Airbnb/Vrbo)	A few weeks, if lucky	Can be found quickly.	Inconsistent quality; not designed for daily life; critically, calendars are not flexible for extensions, forcing you to move again if repairs are delayed.
Professionally Managed Furnished Homes	Mid-term displacement (1-12 months)	Move-in ready with full kitchens; privacy of a real home; designed for flexible, month-to-month extensions.	Temporary housing lacks the uniform system of hotels, requiring closer review of platform rules — despite newer providers working toward greater consistency.

A Note on Housing Providers

When evaluating your options, it’s helpful to understand how different housing providers operate. Some function primarily as brokers, connecting adjusters to a network of individual landlords. This can be effective, but may sometimes lead to variations in property standards or communication delays if the broker has to constantly check with the property owner.

Other providers, like Month2Month, often hold the master lease on their properties and manage them directly. This can offer a more consistent standard of quality and a single, reliable point of contact for any needs that arise during your stay—a significant advantage when you’re navigating an already stressful situation.

Step 4: During Your Stay – Navigating Extensions and Expenses

Your initial lease might be for 30 or 60 days, but as insurance industry experts note, home repairs are notoriously unpredictable. This is where the flexibility of your temporary housing becomes paramount.

Handling Extensions: This is a major pain point with short-term vacation rentals. If another guest has booked the property, you have no choice but to pack up and move your family again. A professional housing provider accustomed to insurance claims understands this and will often have processes in place to allow for flexible, month-to-month extensions until your home is ready.
Communication: A good housing provider will coordinate directly with your adjuster to get approvals for extensions, taking that burden off your shoulders.
Tracking Expenses: Continue to keep meticulous records of any out-of-pocket costs. Many providers offer apps or portals to help you upload receipts and track reimbursements.

Step 5: The Final Stretch – Moving Back Home

When the day finally comes that your home is restored, the process isn’t quite over. A good housing provider will help manage the final steps.

Notice to Vacate: You’ll provide a notice to vacate (typically 14-30 days) to your temporary housing provider.
Move-Out Coordination: They should provide a clear move-out checklist to ensure the property is left in good condition.
Security Deposit: They will facilitate the return of your security deposit. In many jurisdictions, there are strict timelines for this; for example, California law requires landlords to return a security deposit within 21 days.
Final Billing: All final utility bills and other costs will be reconciled with your insurance adjuster.

You’ve Got This. We Can Help.

Being displaced from your home is deeply unsettling, whether it’s from a sudden flood or a slow-moving mold problem. But you don’t have to navigate the complex world of insurance housing alone. By understanding your rights, being proactive, and choosing the right housing partner, you can create a stable and comfortable environment for your family to recover.

At Month2Month, we work directly with displaced families and their insurance adjusters every day. We provide high-quality, fully-managed furnished homes that allow you to maintain your standard of living, with the flexibility that insurance claims demand. We currently serve families across Orange County, San Diego, the Bay Area, Sacramento, Austin, Orlando, Georgia, Maryland, Michigan, and more.

If you need help, submit a housing request or browse our available homes today. We’re here to help you find your way back to normal.

Fully furnished single-family home by Month2Month featuring spacious living areas, modern decor, and family-ready amenities for flexible monthly rentals.

Frequently Asked Questions (FAQ)

How long will my insurance pay for temporary housing?

This depends on your specific policy. Most policies have a time limit (e.g., 6 or 12 months) or a monetary cap on ALE coverage. Review your policy documents or ask your adjuster for the specific limits on your coverage.

Do I have to keep paying my mortgage while my home is being repaired?

Yes. Your mortgage payment is a normal expense that you would have regardless of the damage, so it is not covered by ALE. ALE covers the additional costs above your normal living expenses.

What if the insurance company’s approved housing is terrible?

You do not have to accept it. Politely but firmly state that the offered housing is not “comparable” to your normal standard of living and present alternative options that you have found yourself. Document why the offered housing is unsuitable (e.g., location, size, safety concerns).

Can I get reimbursed for increased food costs if my temporary home doesn’t have a full kitchen?

Often, yes. If you are forced to eat out more because you are in a hotel without a kitchen, the increased cost of restaurant meals (compared to your normal grocery bill) can be claimed under ALE. Keep all your food receipts.

What is the difference between an insurance housing provider and a platform like Airbnb?

Insurance housing providers specialize in working with insurance claims. They understand the need for flexible leases, direct billing to the insurer, and providing homes that meet “comparable” standards. Platforms like Airbnb are designed for travelers and typically lack the flexibility for extensions and direct insurance billing needed for a smooth claims process.

Home Uninhabitable? A Step-by-Step Guide to Insurance Housing