Yes, State Farm renters insurance covers hotel stays. All standard renters insurance policies provide loss-of-use coverage. That means that if your home is damaged by a covered peril and you have to move out while it’s being repaired, your insurer will pay for your additional living expenses, including your hotel stay, up to a limit of 25-30% of your total personal property coverage. (This usually translates to a limit of $8,000 to $9,000.)
Your insurer will only pay for extra expenses
Note that when you file a loss-of-use claim, your provider will only pay for extra expenses that you wouldn’t have ordinarily paid.
For instance, let’s say there’s a fire in your apartment and you have to move out for an entire month. If you still have to pay your full rent for that month, your insurer will reimburse you the entire cost of your hotel stay (whatever it is), because it’s an extra expense on top of your normal ones.
On the other hand, if your landlord waives your rent for that month, your provider will only reimburse you for the difference between your normal rent and your hotel expenses. In other words, if you normally pay $600 in rent and your hotel bill is $2,000, your provider will subtract what you would have spent on rent and reimburse you $1,400.
