Loss Of Use Insurance

Your Kin home insurance policy covers increases in living expenses that result from damage to your home. This is optional with many other carriers, so make sure to double-check that you have this coverage. 

Loss of Use Insurance

Loss of use insurance covers the additional living expenses you sustain as a result of being displaced from your home. If your home is destroyed due to an insured peril and is considered uninhabitable, the increased costs you incur to relocate your family to alternative accommodation and maintain your current standard of living will be reimbursed through your additional living expenses (ALE) coverage. For example, if a neighbor drives into your kitchen, Loss of Use may cover restaurant bills that come as a result of being unable to prepare your own meals.

For loss of use to become effective, a covered peril has to have occurred, except when access to your undamaged home has been denied due to government mandate or a civil authority order as a result of a nearby hazard, for example a wildfire. It also won't be effective if your home is uninhabitable because of flood damage.

What Is Covered by Loss of Use Insurance?

Common costs typically covered include:

  • Temporary accommodation, for example a hotel, apartment or motel
  • Transportation costs
  • Pet boarding
  • Grocery or restaurant bills spent in addition to your regular level of expenditure
  • Relocation costs of your personal belongings
  • Laundry expenses
  • Parking fees

As with most coverage, payout limits will apply so check your policy to confirm it your limits relate to a percentage of the total loss or insured value, a fixed amount or a specified period of time. Kin's coverage is 20 percent of your Coverage A (dwelling coverage). 

What's Not Covered by Loss of Use Coverage?

Costs that are not included by loss of use coverage include:

  • Your mortgage
  • Your normal level of living expenses
  • Loss of rental income beyond the period it takes to repair or rebuild your home

The loss of use coverage extends beyond the expiry of a homeowners insurance policy. This means that should an insured loss occur that invokes the loss of use coverage before the expiry of a policy, the insurer will continue to cover the relevant costs until the terms of the policy have been met – even if this period is after the expiry of the homeowners’ insurance policy.

All Kin Insurance policies cover loss of use. To talk about a policy with an agent, call us at (855) 717-0022. To apply for a policy online and get a quote in moments, start here

The Tree In The Kitchen

You wouldn’t think a tree belongs in the kitchen, but that’s what happened to the Jenkins family when a storm knocked an old oak onto the side of their house. It was a pretty big tree. It took down most of a wall along with their stove and fridge.

Guess what: now they can’t cook! While Kin will pay to repair their house and buy new appliances, the repairs are going to take a couple of weeks and the kitchen will be unusable.

This means the family will have to eat out every day until the kitchen is repaired—which is significantly more expensive than home-cooking. Thankfully, Kin will cover the difference between what they usually spend cooking at home and what they have to spend on takeout.

A Bad Fire

The Bixby family had to rush home from vacation because something terrible happened. Their house burned to the ground. The next few months will be difficult, as their house gets rebuilt and their things get replaced.

One thing they don’t have to worry about is paying for a place to live in the meantime. That’s what Loss of Use is for. Since the house they lived in was a 3 bedroom house, insurance will pay for them to live in a place just as nice.

Loss of Use pays for your family to maintain its normal standard of living—not some cheap motel or a cramped apartment. Rebuilding from a home loss if tough enough without having to worry about where you’re going to live in the meantime.

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You shouldn't need an advanced degree to understand your insurance policy. Learn about what a Kin policy offers, with real world examples, to provide clarity and provide peace of mind.

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