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 by a covered peril and you must seek other living arrangements while repairs are made. Loss of use coverage can help reimburse you for hotel, restaurant and other living expenses you may incur during a specified time period 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 Loss of Use protection up to 20% of your dwelling coverage limit. 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.
It’s important to remember to file a claim and get approval from a carrier before you start to use this coverage. You should also ask whether any time limits apply.
Protect your home and reduce your risk
Though your Loss of Use coverage can help you get back on your feet after your home becomes damaged, it’s better if you don’t suffer damage from a covered peril in the first place. For tips and tricks on how to prepare your home and minimize risks that could lead to claims, you can read our homeowner tips.
Have other questions about home insurance, how to get started, or how to apply your Loss of Use protection? Take a look at our FAQs page to see questions that have been posted by our customers. Sometimes you can discover that someone else has asked your question.
Other home insurance coverages in a standard policy:
A standard home insurance policy generally includes the following six main forms of coverage. Because Loss of Use isn’t used as often as other types of protection such as dwelling or personal property, it is sometimes forgotten.
Make it a point to familiarize yourself with all major forms of coverage now. That way, you can receive the protection you need when there’s a problem.
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