What Is Loss of Use Home Insurance Coverage?

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When you purchase a homeowner’s insurance policy, one coverage that is typically included is loss of use coverage. This coverage provides valuable protection if your home is damaged and uninhabitable for any length of time.


Loss of use coverage pays for indirect expenses you incur if your home becomes uninhabitable because of a covered loss. It does not include building materials or labor needed to repair your home.

Indirect Expenses

Indirect expenses include hotel charges, transportation and meal expenses you would not have incurred if you had been able to remain in your home.



The purpose of loss of use coverage is to allow you to maintain the same standard of living as if your home had not become uninhabitable.



Loss of use coverage is typically provided at 20 percent of your dwelling coverage. If you have $200,000 in dwelling coverage, your policy will pay up to $40,000 for loss-of-use expenses.


Proof of Loss

Keep hotel, transportation and restaurant receipts if you are displaced from your home because of a covered loss. These receipts will provide proof of your loss-of-use expenses.