What Is Loss of Use Coverage?

Loss of use coverage, sometimes called additional living expenses, pays the extra costs of living elsewhere if a covered loss makes your home unlivable while it is repaired. It covers the difference between your normal costs and your temporary costs, not your whole lifestyle.

Loss of use pays the additional costs you would not have had if your home were livable. That typically includes a hotel or rental, restaurant meals beyond your usual grocery bill, and extra transportation or storage costs. It is designed to keep you at roughly your normal standard of living, not to upgrade it.

The coverage has a limit, usually a percentage of your dwelling coverage, and a time limit. Once you reach either, the coverage stops, so it matters how long repairs take and what your limit is.

If a fire or storm damages your home, loss of use is what keeps your family housed during a rebuild. A rebuild can take months, especially in the Philadelphia area where older homes and permitting can extend timelines.

Keep every receipt for temporary housing and expenses, because your insurer reimburses documented costs. Ask your agent what your loss of use limit is and whether it is enough to cover a realistic rebuild timeline for your home.