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.