Loss of Use coverage on a standard homeowner policy protects you if you are forced to move out of your home while it is being rebuilt or repaired after a covered loss, such as fire or windstorm.
Loss of Use is normally up to 20% of the dwelling coverage.
It will reimburse you for additional living expenses you incur as a result of your home being uninhabitable, such as rent or renter’s insurance, hotel, restaurant, and even mileage expense if you are forced to live further from your work while your home is repaired. It is important to keep good records and submit additional living expense receipts to your insurance company.
Unfortunately, Loss of Use coverage does not extend to mortgage payments, as this is not an additional expense related to your property loss, but an expense you would have whether or not you incurred the loss.