What Is Loss of Use Insurance?

Loss of use insurance can help pay for the additional living expenses you take on when a covered home insurance claim makes your home uninhabitable. 

Think about the last time you stayed away from home. Chances are you had to line up a place to stay and pay to eat at restaurants or order takeout. If your trip was long enough, you likely had to handle other necessities, like going to the laundromat, etc. 

That's similar to what happens when you are forced to stay away from home while it's being repaired. So say your home is damaged by a fire, and you can't live there while repairs are underway. Coverage D in your home insurance policy can pay for additional living expenses, such as the cost of:

  • Renting a place to stay
  • Buying groceries
  • Getting takeout
  • Doing laundry
  • And more

When Does Loss of Use Coverage Kick In?

To draw on your loss of use coverage, your home must be made uninhabitable by a peril your home insurance policy covers, such as:

  • Fire
  • Windstorm
  • Vandalism

Typically, if your home is undamaged but you still can't access it because of a government mandate or a civil authority, this coverage won't kick in. An exception may happen if a civil authority prohibits the use of your home as a result of direct damage to neighboring premises. In those cases, you may be entitled to two weeks of additional living expenses coverage and/or fair rental value reimbursement.

This coverage won't be effective if your home is uninhabitable because of flood damage

What Does Loss of Use Insurance Cover?

This portion of your home insurance policy can usually pay for:

  • 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

Again, these expenses can be covered only up to the limits of your policy. If you need more loss of use coverage, talk to your agent.

What Doesn't Loss of Use Insurance Cover?

Loss of use coverage typically won't pay for:

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

It also won't pay for additional living expenses when your home is made uninhabitable by a peril your standard home insurance policy doesn't cover, like floods.


How Much Loss of Use Coverage Do You Need?

We typically suggest having about 20 percent of your Coverage A (dwelling coverage) in loss of use protection. So if your dwelling is insured for $200,000, you would generally want to have at least $40,000 in loss of use coverage.

Of course, your lifestyle may also dictate the amount of additional living expense coverage that makes sense for you and your family. When in doubt, ask your agent for their guidance.

Do All Policies Include Loss of Use Coverage?

It depends on the provider, but every policy Kin sells does include loss of use protection! And no matter where you buy your home insurance, we strongly recommend looking for a policy that does. It's this extra protection that can make all the difference in recovering quickly from an unexpected loss. 

To talk about a policy with a Kin agent, call us at (855) 717-0022. To apply for a policy online and get a quote in moments, start here

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