Why Hotels Are Often the Default for Displaced Families — and Why That’s a Problem

When a family is displaced from their home due to fire, storm damage, or major repairs, the immediate priority is safety and shelter. In many cases, insurance carriers or housing vendors place families into hotels as a quick solution.

Hotels are often chosen because they are:

• Fast to book

• Widely available

• Easy to manage short term

However, what works for the first few nights does not always work for the next few months.

For families displaced longer than a couple of weeks, hotel living can quickly become stressful and impractical. Shared sleeping spaces, limited kitchens, lack of laundry, and minimal privacy can make it difficult to maintain normal family routines.

Insurance policies that include Additional Living Expense (ALE) or Loss of Use coverage are generally intended to help families maintain a standard of living similar to what they had before the loss. For many households, a hotel room simply does not reflect that standard.

Hotels may be a reasonable temporary emergency solution, but they are often not the best long-term option for families facing extended displacement.

Understanding that hotels are a default — not a requirement — is the first step toward finding housing that better supports recovery and stability.