My family was the victim of a house fire recently. Fortunately, no one was injured, but our house has to be repaired, and we will have to live elsewhere for several weeks. I know the insurance will cover the cost of the repairs, but how do we pay for all our extra living expenses in the meantime? --Living Beyond Our Means

Dear Living:

No need to get fired up on that score! Your homeowner's insurance provides you with a safety net. Any additional living expenses you incur will be covered up to the maximum amount specified in your policy -- usually 20 per cent of the total insurance you have on your house.

If your house is made unfit to live in by a peril that you are insured against -- like fire -- your insurance will cover any reasonable increase in living expenses that you incur while your house is being repaired (or until you find permanent accommodation, if the damage is irreparable). The idea is to permit the members of your household to maintain the standard of living they enjoyed before the fire.

For example, your insurance would cover moving expenses -- both out and in -- as well as any other extra costs. Perhaps you used to live right on a bus route before the fire, and now you must use alternative transportation, at a higher cost, to get to work; perhaps it is more expensive for child care at your temporary place of residence; perhaps you had laundry facilities before, and now you have to pay for them; or maybe there aren't any reasonable cooking facilities, so you have to buy more meals at restaurants -- all these additional costs would be covered.

In order for this insurance to kick in, two criteria must be met: there must be damage to the dwelling by a peril that the policy insures against; and the damage must make the dwelling unfit to be occupied while the repairs are being made.

This coverage is also available to apartment dwellers, as part of the tenant's insurance package. The only difference is that the amount of insurance available for additional living expenses is calculated on the insurance you have on your contents, rather than on the building. The same holds true for condominiums.

It's important to remember that your homeowner or tenant policy doesn't just help you replace what you lost -- it also tides you over in the interim.

Note: The preceding information is based on the Insurance Bureau of Canada's guideline wordings. Remember, policies vary, so when in doubt, consult your insurance representative.