Loss of Use typically provides coverage for additional living expenses resulting from a covered loss. In simpler terms, this means you would be covered for expenses you wouldn’t ordinarily have if you were living in your own home. For example, let’s assume you typically spend $100 on gas per month, but that amount has increased to $150 because you live in a hotel that is farther from work while your home is repaired. In this scenario, you would be reimbursed $50, which is the incremental cost. A list of common additional living expenses that are typically covered under loss of use insurance is provided below.

• Cost of temporary housing, such as a hotel or a motel.
• Taking public transportation.
• Boarding a pet.
• Additional food expenses.
• It can also cover your loss of rental income for the portion of the home you declared was rented to others, but that is not now inhabitable/rentable.

Loss of use protection does not cover expenses that you were already responsible for before the loss. You will still be responsible for paying your mortgage, insurance, child care expenses, and so on. The important thing to remember is that loss of use protection is for additional expenses you become responsible for because you can’t live in your home.

For example, if your family normally spends around $200 a week on food, but now you are staying in a hotel without a kitchen, you may need to eat out for most of your meals. Eating out is costing you $300 a week. Under Loss of Use coverage, the $100 additional expense per week would be covered.

Everyone’s insurance needs are different so please consult your CSR about your policy to understand the amount of loss of use coverage you should or do have.