What Is Loss Of Use?

Loss of use

What is Loss of Use Coverage on Your Homeowners Insurance Policy?

Loss of use coverage helps pay for expenses that are due to you being displaced from your home because of a covered accident or claim.

What Does Loss of Use Cover on Your Homeowners Insurance Policy?

If your home is damaged and you have to file a claim, you may not be able to live in your home while those repairs are being made.

You may need to stay in a hotel while the repairs are being made. You also may need to eat out more because you don’t have a functioning kitchen. You may even need to board your pet somewhere because there’s no safe spot for them to stay while the repairs are being made on your home. Loss of use helps pay for all of these additional expenses that you occur because a covered accident happened at your home and the repairs are being made.

What Does Loss of Use Not cover?

Loss of use coverage will not cover expenses that you already had before the accident or claim occurred. In other words, they’re not gonna pay your mortgage, they’re not gonna pay for child care. They’re not gonna pay for you to go out and have a steak dinner every night.

They’re going to pay reasonable expenses that you have after you’ve been displaced from your home because of a claim.

Do You Need Loss of Use Coverage on Your Homeowners Insurance Policy?

Yes. This is a very important coverage, in fact its going to come automatically on almost every single home insurance policy that you can buy.

But it is something that you absolutely need. Think of all the expenses that would occur should you be displaced from your home? Nobody wants to pay those out of pocket.

How Much Loss of Use Coverage Do You Need on Your Homeowners Insurance Policy?

This will vary due to your specific circumstances. However, as I mentioned, it comes standard on most homeowners insurance policies and normally it comes as a percentage of whatever your dwelling coverage limit is.

If you forgot what dwelling coverage is, check it out, we have a video on it, but usually it comes at 20% automatically. You can take a look at this number if you feel that’s too much. Most policies allow you to customize and move that number down. If you feel it’s not enough, you’re able to move that coverage up.

But take a look at your specific circumstance and the expenses that could occur should you be displaced from your home and that will help you figure out how much coverage you need.

How Much Does Loss of Use Coverage Cost on Your Homeowners Insurance Policy?

Well, with almost all coverage, that depends, it depends on your home, the age of the home, where the home is, it depends on your dwelling coverage.

It depends on a number of different factors. The best advice is to deal and consult with an independent insurance broker. They can take a look at your specific circumstance and craft the best policy for you, both in terms of price and in terms of coverage.

Please complete the form below for a quote.

Request Your Proposal Here

Are you ready to save time, aggravation, and money? The team at Heritage Insurance is here and ready to make the process as painless as possible. We look forward to meeting you!

Skip to content