Understanding Home Insurance Policies Loss of Use Coverage

When disaster strikes, your home insurance policy does more than just cover the cost of repairs: It can also help you maintain your standard of living while your home is being restored. One of the most essential yet often overlooked components of a homeowners insurance policy is loss of use coverage, sometimes referred to as additional living expenses coverage.

What is Loss of Use Coverage?

Loss of use coverage may help pay for additional expenses when your home becomes uninhabitable due to a covered peril, such as a fire, storm damage or a burst pipe. If your policy covers the incident, this provision may provide financial assistance for temporary living arrangements while repairs are underway.

What Expenses are Covered?

Loss of use coverage typically includes the following:

• Hotel or rental costs—If you need to stay in a hotel or rent a temporary residence, your policy may cover those costs.

• Increased food expenses—If you normally cook at home but must rely on restaurant meals, the additional cost may be covered.

• Transportation costs—If you need to travel farther for work, school or daily activities, your extra mileage or public transit expenses may be reimbursed.

• Pet boarding—If your temporary residence doesn’t allow pets, your policy may cover the cost of boarding them elsewhere.

• Storage fees—If you need to store belongings while your home is repaired, your policy may assist with those costs.

Why This Coverage Matters for Illinois Homeowners

From harsh winter storms to unexpected flooding, Illinois homeowners face unique risks. Understanding and maximizing your loss of use coverage helps ensure you and your family get access to financial support in times of crisis. For personalized advice on your home insurance policy, contact Illinois Insurance Family today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.