What is loss of use coverage

In the unfortunate event that you were temporarily unable to live in your home or property due to an incident, how much money would that cost? Depending on how long you had to wait while your home is being rebuilt or repaired, the total cost could really add up. That’s where loss of use insurance kicks in. Also referred to as additional expenses insurance or part D coverage, loss of use homeowners insurance covers living expenses that you incur if your home is deemed uninhabitable as the result of a covered peril. 

If you were forced to move out of your house or even a rental property due to damage caused by a fire, for instance, loss of use insurance would help to cover costs such as your hotel stay, rental or a temporary apartment or restaurant bills while your residence is being repaired or rebuilt.

What expenses are typically covered by loss of use?

Loss of use coverage is typically built into your homeowner's insurance policy. While there are limits to what and how much your insurance provider will reimburse you for, the below items are usually covered to help you maintain your current standard of living:

  • Temporary residence such as a hotel, motel or apartment 
  • Moving costs
  • Excess of normal grocery or restaurant bills 
  • Storage costs for household items
  • Laundry expenses
  • Transportation fees
  • Parking fees
  • Pet boarding

Loss of use coverage can help provide the peace of mind and financial assistance you need in the event you are suddenly displaced from your home. Be sure to review your home insurance policy or renters insurance policy to make sure you are adequately covered.

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