What is 'loss of use' coverage designed to provide?

'Loss of use' coverage is designed to provide financial support for living expenses when a home becomes uninhabitable due to a covered peril, such as fire or water damage. This type of coverage assists homeowners in maintaining their standard of living during the time it takes to repair or rebuild their property. It typically covers necessary expenses, such as temporary housing, increased food costs, and other related living costs, ensuring that individuals do not suffer undue financial hardship while their home is being restored.

This coverage is particularly essential because it recognizes that, while a home is being repaired, the homeowners will incur additional costs that they would not typically face. Thus, it serves to mitigate the impact of their loss, allowing them to focus on rebuilding rather than worrying about how to afford living expenses during the renovation process.