What is "loss of use" coverage in homeowners insurance?

"Loss of use" coverage in homeowners insurance is designed to assist the homeowners with additional living expenses when their home becomes uninhabitable due to a covered loss, such as fire or severe storm damage. This type of coverage helps pay for necessary costs incurred while the homeowner is displaced, including temporary accommodation, increased food expenses, and other related living expenses. It aims to ensure that policyholders are not left financially burdened during the time they cannot reside in their homes.

This coverage is vital in situations where immediate repairs cannot be made, allowing homeowners to maintain a standard of living while their property is being restored. It highlights the importance of having this specific coverage included in a homeowner's insurance policy, as it directly addresses the unique challenges that arise when a home is damaged to the point of being unlivable.