Loss of Use (or Coverage D) is the portion of a standard home insurance policy that protects you in the event that your home is destroyed or damaged and you must seek other living arrangements while repairs are made. Loss of use coverage reimburses you for hotel, restaurant and other living expenses you may incur as a result of your home being uninhabitable. The purpose of this coverage is to help you maintain your standard of living in the event of a disaster.
Most standard home insurance policies will provide coverage up to 20% of the dwelling coverage. Meaning, if you have $100,000 worth of dwelling coverage, your loss of use coverage would be approximately $20,000. Talk to your home insurance agent for specific coverage information on your policy.
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Q: What does a standard home insurance policy cover?
A: A standard home insurance policy includes six basic types of coverage:
- Coverage A- Dwelling
- Coverage B- Other Structures on Your Property
- Coverage C- Personal Property/Contents
- Coverage D- Loss of Use
- Coverage E- Personal Liability Protection
- Coverage F- Medical Payments
