In a homeowner's policy, what does “loss of use” coverage protect against?

“Loss of use” coverage in a homeowner's policy primarily provides protection for additional living expenses that the insured incurs after a covered loss makes their home temporarily uninhabitable. This includes costs such as hotel bills, restaurant meals, and other necessary living expenses incurred while the home is being repaired or rebuilt.

The coverage is particularly important because when a significant incident occurs—such as a fire, flood, or substantial damage from a storm—that prevents the homeowner from living in their property, they may need to find alternative accommodations. Loss of use coverage ensures that the policyholder is financially supported during this challenging time, allowing them to maintain a standard of living comparable to what they had before the loss.

This aspect of the policy is a critical safety net, as it directly addresses the immediate needs of the homeowner following a loss, ensuring they are not left in a financially vulnerable position due to the need for temporary housing and other associated costs.