What is Loss of Use coverage on Home Insurance?

Your house was damaged in a fire and now its unlivable. What happens now?


Have you ever wondered what the “loss of use” line was for on your policy? Now you know. Loss of use, otherwise known as additional living expenses, can help pay for the additional cost you might incur for reasonable housing and living expenses if a covered event makes your home temporarily uninhabitable.

Let’s dive into this a little bit deeper:

Loss of use reimburses homeowners for any additional living expenses stemming from a temporary relocation. So, if your house what’s damaged in a fire, loss of use coverage would reimburse you for the cost of a hotel stay up to a the limit on your policy.

For example, if your limit is 30% of your dwelling coverage ($200,000) then you would have up to $60,000 in additional living expenses. Of course, policy coverage amounts vary from carrier to carrier so you always want to check with your agent so you understand exactly how much coverage you have.

What all is covered?

  • Cost of temporary housing
  • Public transportation costs
  • Boarding of pets
  • Additional food expenses

Keep in mind that your insurance company will not cover your utilities during this time.

Do I need to pay a deductible?  Normally, no there is no deductible. However, you are still responsible to pay any deductibles for the remainder of your claim.

This line of coverage can be really confusing and again, coverage varies by policy and carrier. If you have any question at all as to what your policy covers, give us a call!