Personal Liability Insurance: What Happens When Someone Gets Hurt on Your Property

If your condo became unlivable after a fire or water disaster, could you afford to live elsewhere while it’s being repaired?
Have you checked whether your condo insurance includes enough “loss of use” coverage to pay for temporary housing and other extra expenses?
Many Massachusetts condo owners are surprised at how little coverage they actually have when they file a claim.
In this article, we’ll explain how  loss of use coverage works in a standard HO6 condo insurance policy , show you how to calculate your actual limits, and help you decide if you need to make changes before a loss happens.

An HO6 policy is a  personal condo insurance policy  that covers:

• Your personal property (furniture, electronics, clothing, etc.)
• Interior unit upgrades (like cabinets, flooring, appliances not covered by the condo association)
• Personal liability
• Loss of use —the focus of this article

Your condo association’s  master insurance policy  covers the structure and common areas—but not your belongings or your temporary living expenses.

Loss of use (also called  Additional Living Expenses or ALE ) helps pay for the cost of:

• Rent for a temporary home
• Utilities (heat, electricity, water)
• Laundry or meals  if your temporary housing lacks those amenities
• Other  necessary costs  that go above and beyond your normal living expenses

💡  In Massachusetts , most HO6 policies calculate this coverage as a  percentage of your personal property limit .

Let’s break it down with a real-world example:

📌 If your policy has:

• Personal property limit:  $25,000
• Loss of use limit:  30%

👉 Then your  maximum ALE payout  is  $7,500

Now ask yourself:

• Would $7,500 cover  3–6 months of rent, utilities, and other added costs  in your area?
• Could you afford temporary housing while still paying your mortgage, condo fees, and taxes?

In many major Massachusetts cities and towns, temporary housing alone could easily run  $2,500–$3,500 per month .

A major misconception is thinking the condo association’s  master policy  will step in.

🚫 It won’t cover:

• Your  personal belongings
• Your  hotel or apartment costs
• Your  temporary utilities or meals
• Any  loss of use  expenses whatsoever

That’s why your  HO6 policy is essential —and why having enough coverage matters more than ever.

Here are 3 steps you should take today:

1. ✅  Review your HO6 policy
   Look for the  Loss of Use  or  ALE  section and see the current coverage percentage.
2. ✅  Do the math
   Calculate whether the actual dollar amount would cover 3–6 months of temporary living costs.
3. ✅  Talk to your independent insurance broker
   You can often  increase your personal property coverage  (which boosts your ALE automatically) for a very reasonable cost.

If your condo was damaged in a major loss, you’d likely have to move out for months—and continue paying your mortgage, condo fees, and taxes. Would your current HO6 policy cover the costs of temporary housing?

Now that you understand how  Loss of Use  coverage works—and how it’s calculated—you can take action before a disaster hits.

📞  Call Vargas & Vargas Insurance client , call us at  617-298-0655  to review your current coverage.