What is loss of use coverage in homeowners insurance?

Loss of use coverage in homeowners insurance is primarily designed to provide financial assistance for additional living expenses incurred when a property becomes uninhabitable due to a covered loss, such as a fire or severe storm. This coverage ensures that policyholders can maintain their standard of living by covering costs such as temporary housing, food, and other necessary expenses while their home is being repaired or rebuilt.

The focus is on the policyholder’s living situation, as they may need to find alternative accommodation during the restoration of their residence. This aspect of homeowners insurance plays a crucial role in protecting individuals from the financial strain that can occur when their primary living space is compromised.