In what situation does “Loss of Use” coverage typically apply?

"Loss of Use" coverage typically applies when a covered peril makes the home uninhabitable. This type of insurance coverage is designed to assist policyholders with additional living expenses incurred when they cannot live in their home due to damage from a covered event, such as a fire, storm, or other disasters that are specified in the policy.

For instance, if a covered event damages the home to the extent that it cannot be lived in, the "Loss of Use" coverage will help pay for temporary housing, increased transportation costs, and other necessary expenses incurred while the home is being repaired or until the policyholder can find a new permanent residence.

In contrast, other scenarios such as a tenant vacating the property, property being renovated, or an owner deciding to sell the property do not trigger "Loss of Use" coverage. These situations do not result from damage due to a covered peril and therefore do not meet the criteria for this type of insurance support.