Glossary > Insurance > Homeowners Insurance > Standard Homeowners Insurance

Loss Of Use

Loss of Use refers to a coverage in homeowners insurance that helps pay for additional living expenses if your home becomes uninhabitable due to a covered event, such as a fire or natural disaster.

Example #1

For instance, if your house is damaged by a fire and you need to stay in a hotel while it is being repaired, Loss of Use coverage may help cover the cost of the hotel stay, meals, and other extra expenses.

Example #2

Another example would be if a tree falls on your house during a storm, rendering it unsafe to live in, Loss of Use coverage could assist in covering temporary accommodations until repairs are completed.

Misuse

Misuse of Loss of Use coverage could occur if someone tries to claim expenses unrelated to the additional living costs incurred due to the loss of home use. It's essential to prevent misuse to keep insurance premiums fair and ensure coverage is available for those genuinely in need.

Benefits

The benefit of Loss of Use coverage is that it helps alleviate the financial burden of having to find alternative accommodation when your home is uninhabitable. This coverage provides peace of mind knowing that you have support during a challenging time.

Conclusion

Loss of Use coverage is a valuable component of homeowners insurance, as it provides essential support in times of crisis when your home is temporarily uninhabitable. By helping cover additional living expenses, it ensures that you can maintain a reasonable standard of living while your home is being restored.