Managing Additional Service Expenses in a Temporary Rental: A Guide for Home Rebuilders
Rebuilding your home after a disaster often means relocating to a temporary rental property. This transition can bring additional service expenses that your primary residence previously supported, such as laundry, postal services, and more. Understanding and managing these costs is crucial for maintaining financial stability during this period.
This guide provides detailed advice on how to think about and track these additional expenses, with specific examples.
Identifying Additional Service Expenses
When moving to a temporary rental, consider the services and conveniences your primary residence provided. These may include: Laundry Services, Postal and Delivery Services, Storage Solutions, Household Maintenance and Utilities
Managing Laundry Expenses
1. In-Unit vs. On-Site Laundry
In-Unit Laundry:
Convenience: Having a washer and dryer in your rental unit saves time and effort.
Cost: Typically included in the rent, but higher rent may offset savings.
On-Site Laundry:
Accessibility: Ensure the laundry facility is easily accessible and has sufficient machines.
Cost: Pay-per-use machines can add up, especially for larger families.
Example:
Primary Residence: Your home had a washer and dryer, with an average monthly utility cost of $50 for water and electricity.
Temporary Rental: You spend $4 per load at an on-site facility, averaging 8 loads per month. Total monthly laundry cost: 8 loads x $4 = $32.
Managing Postal and Delivery Services
1. Mail Forwarding and PO Box
Mail Forwarding:
Service: Use USPS mail forwarding to ensure you receive all your mail.
Cost: USPS charges a nominal fee for this service, typically around $1.05 for identity verification.
PO Box:
Service: Rent a PO Box for secure mail delivery.
Cost: Fees vary by location and box size, typically ranging from $10 to $30 per month.
Example:
Primary Residence: You had a mailbox at your home with no additional cost.
Temporary Rental: You set up mail forwarding ($1.05) and rent a small PO Box for $15 per month. Total monthly cost: $16.05.
2. Package Delivery
Secure Delivery:
Considerations: Ensure your temporary rental has secure package delivery options, such as a concierge service or secure mailroom.
Alternative Solutions: Use package lockers or delivery services like Amazon Locker to avoid package theft.
Example:
Primary Residence: Packages were delivered directly to your door with no issues.
Temporary Rental: You use Amazon Locker for secure delivery, which is free for Prime members but may cost $1.99 per package for non-members. Average 5 packages per month: 5 x $1.99 = $9.95.
Loti can help:
There are a variety of tools to help you add, organize and submit expenses such as these for your insurance claims.
Managing Storage Solutions
1. Temporary Storage Needs
Self-Storage Units:
Service: Rent a self-storage unit for items that don’t fit in your rental.
Cost: Monthly fees vary based on size and location, typically $50 to $200 per month.
Example:
Primary Residence: Your home had ample storage space for all your belongings.
Temporary Rental: You rent a 10x10 storage unit for $100 per month to store furniture and seasonal items.
Managing Household Maintenance and Utilities
1. Utilities
Increased Costs:
Service: Utilities such as electricity, water, gas, and internet may have higher rates or usage costs at your rental.
Tracking: Monitor and compare utility bills to your previous home’s expenses.
Example:
Primary Residence: Monthly utility costs averaged $200.
Temporary Rental: Due to different rates and higher usage, utility costs average $250 per month. Increased cost: $50 per month.
2. Household Maintenance
Differences in Responsibilities:
Service: Some rentals may include maintenance services (e.g., Lawn care, snow removal), while others may not.
Cost: Determine if you need to hire additional services that were previously handled at your home.
Example:
Primary Residence: You handled lawn care and snow removal yourself.
Temporary Rental: You hire a service for lawn care at $30 per week. Total monthly cost: $30 x 4 = $120.
Filing Insurance Claims for Additional Service Expenses
1. Documenting Expenses
Receipts and Invoices: Keep detailed records of all additional service expenses, including receipts, invoices, and payment confirmations.
Expense Log: Maintain an organized log of expenses, noting the date, description, and amount for each service.
2. Submitting Claims
Contact Your Insurance Company: Notify your insurer of your relocation and ask about coverage for additional living expenses (ALE), including service expenses.
Provide Documentation: Submit your organized expense log and supporting documents to your insurance company. (Again, Loti can help here).
Follow Up: Stay in regular contact with your insurance representative to ensure your Claim is processed promptly.
Example of Managing and Claiming Additional Service Expenses
Scenario: You moved to a temporary rental while rebuilding your home, incurring additional laundry, postal, storage, and maintenance expenses.
Expenses:
Laundry: $32 per month (on-site laundry).
Postal Services: $16.05 per month (mail forwarding and PO Box).
Package Delivery: $9.95 per month (Amazon Locker).
Storage: $100 per month (self-storage unit).
Utilities: $50 per month (increased costs).
Maintenance: $120 per month (lawn care).
Total Monthly Additional Expenses: $328.
Claim Submission:
Expense Log: You maintain a detailed log and collect receipts for all additional expenses.
Documentation: You submit the log and receipts to your insurance company under your ALE coverage.
Follow-Up: You follow up regularly to ensure reimbursement.
Wrap-Up
Managing additional service expenses when moving to a temporary rental involves careful planning, tracking, and documenting your costs. By understanding the differences between your primary residence and rental, and leveraging your insurance coverage, you can mitigate financial stress during this challenging period.
Utilize organized expense logs, keep detailed records, and communicate effectively with your insurance company to ensure you receive the support you need.