Why You May Need Loss-of-Use Coverage on Your Home

When disaster strikes, loss-of-use insurance can help cover the cost of living elsewhere.
Why You May Need Loss-of-Use Coverage on Your Home
Loss-of-use coverage protects homeowners from paying both housing and living expenses after a covered disaster. Dogora Sun/Shutterstock
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If your home is partially destroyed by a covered peril, you might need a place to live until repairs are made. The cost of additional lodging adds up quickly. That’s when loss-of-use coverage goes into effect.

Loss-of-use coverage is usually part of a standard homeowner’s insurance policy. However, according to the Insurance Information Institute, state Fair Plans don’t typically provide loss-of-use coverage.

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Anne Johnson
Anne Johnson
Author
Anne Johnson was a commercial property and casualty insurance agent for nine years. She was also licensed in health and life insurance. She went on to own an advertising agency, where she worked with businesses. She has been writing about personal finance for 10 years.