What is loss of use insurance?

Loss of use coverage, also known as additional living expense coverage, helps you offset the costs of living elsewhere while your home is being repaired (in the event a covered loss happens to your home that makes it uninhabitable).

What does additional living expenses insurance cover?

Additional living expenses insurance may cover the cost of the following while your home is considered “uninhabitable”:

  • Lodging (rent or hotel stays)
  • Restaurant meals
  • Pet care and boarding
  • Storage fees
  • Increase in utility costs

Most policies limit the time frame for coverage based on the type of loss you've experienced so pay attention to your specific policy language (or talk to your agent if you are unsure).

How much additional living expenses coverage do I need?

Some states require coverage for expenses incurred up to 12 months (and not a certain dollar amount). If you live in a state that does not have this requirement, think about all of your daily living expenses and ask yourself the following questions:

  • Do I have a lot of items that I'd need to store?
  • Do I have pets?
  • Do I do a lot of laundry during the week? And, therefore, will I need to visit a laundromat often?
  • Will I have to spend more money on gas if my temporary lodging is farther away from work?

Check your policy for your limits. If you think you need additional coverage, let us know.