Home Insurance: What is Loss of Use Coverage?

Loss of Use Coverage

Your homeowner’s insurance policy will include what’s called Additional Living Expense Coverage. That will be a dollar amount, and it’s typically a percentage of your dwelling coverage and it covers expenses in case you can’t live in your home because of an event that is covered by your policy – ie: fire, tornado, other natural disaster makes your home unlivable for a period of time.

The living expense provision provides coverage up to that stated amount of any additional incurred expenses that you have because you’re not able to live in your home. 

What Does the Loss of Use Coverage Cover?

The Loss of Use Coverage covers hotel stays, rentals, meals, groceries, moving, and storage costs. Don’t forget to store your receipts because some insurance companies reimburse you instead of paying for these expenses upfront.

For example – You have to go and stay in a hotel and that hotel cost is in addition to your normal mortgage. The coverage would cover the additional expense of the hotel. 

Always check for any restrictions or other requirements that must be met to be reimbursed under this coverage because there are safeguards built in by the insurance company to be sure people do not take advantage of the company and bill for expenses not covered within your policies’ terms. 

If anything should happen, be prepared so you know what to be asking for and what coverage details to be looking at.

Are you considering buying a home in the Nashville and Middle Tennessee area? Give me a call at (615) 930-0313, schedule a call with me, or send me a message! I love helping people and using my financial and legal background to guide you in finding your dream home!