Helping You Maintain Your Normal Life After a Covered Loss
Coverage D (Loss of Use) helps pay for the additional living expenses you incur if a covered loss makes your home temporarily uninhabitable.
If your home can't be lived in because of a covered claim, Coverage D can help with the extra costs of living somewhere else while repairs are being completed.
It isn't designed to improve your lifestyle—it helps you maintain a lifestyle similar to the one you had before the loss.
What Does Coverage D Protect?
Coverage D helps pay for the additional living expenses you incur when a covered loss makes your home temporarily uninhabitable.
Common expenses that may be covered include:
Rule of thumb: Coverage D pays for the extra costs of maintaining your normal standard of living—not the expenses you would have incurred if you were still living at home.
How Much Coverage Do I Have?
Most homeowners policies automatically include Coverage D as a percentage of your dwelling coverage (Coverage A).
For many policies, Coverage D is set at 20% of your Coverage A limit, although the exact amount varies by insurance company and policy.
For example:
Coverage D is intended to help with the additional costs of maintaining a normal standard of living while your home is being repaired after a covered loss. Coverage applies only until your home is repaired, rebuilt, or you permanently relocate, subject to your policy's limits and terms.
Common Misconception
Many homeowners believe Coverage D pays for every expense they incur while they're displaced from their home.
In reality, Coverage D is designed to pay the additional living expenses you incur because a covered loss has made your home temporarily uninhabitable.
For example, if you normally spend $200 per week on groceries but spend $350 per week eating at restaurants while staying in a hotel, Coverage D generally helps cover the additional $150—not the entire restaurant bill.
The easiest way to think about it: Coverage D helps you maintain your normal standard of living—it doesn't provide a free vacation.
Real-World Example
A kitchen fire causes extensive damage to your home, making it unsafe to live in for several months while repairs are completed.
During that time, you temporarily move into a hotel and later a rental home. Coverage D may help pay for the additional living expenses you incur, such as the increased cost of housing, meals, and other reasonable expenses above what you normally spend, subject to your deductible, policy limits, and policy terms.
Remember: Coverage D doesn't repair your home—that's the job of Coverage A. Instead, it helps you maintain your normal standard of living while your home is being repaired.
The Bottom Line
Coverage D helps you maintain your normal standard of living if a covered loss temporarily forces you out of your home.
From temporary housing to increased meal costs and other additional living expenses, Coverage D is designed to reduce the financial burden of being displaced while your home is repaired.
If you have questions about how Loss of Use coverage works or whether your policy provides adequate protection, I'd be happy to review your coverage and help you understand your options.
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