What does “Loss of Use” coverage provide to the insured?

“Loss of Use” coverage is designed to provide financial assistance to the insured when their dwelling becomes uninhabitable due to a covered peril, such as a fire or flooding. In these situations, the homeowners may be temporarily displaced and face additional living expenses for necessities like hotel accommodations, meals, and other costs that arise from living elsewhere. This part of the insurance policy helps alleviate the financial burden by reimbursing these extra expenses incurred during the period it takes to restore the home to a livable condition.

This coverage is particularly important because it ensures that the policyholder does not face overwhelming costs simply because their home is currently unlivable. It bridges the gap between the loss of their home and the expenses needed to maintain a reasonable standard of living during the recovery period.