Loss of use coverage: Why it maters

by Ari Koufos 02/27/2023

Loss of use coverage, or “coverage D,” is an important part of a standard homeowners insurance policy. While other parts of your policy can help you pay to repair damages to your home, loss of use coverage is there to help you while repairs are being made.

Depending on how long you have to wait before you can move back into your home, the total cost of your living expenses can increase dramatically. Luckily, loss of use coverage pays for a variety of essentials beyond the limit of your dwelling coverage.

Here is a quick guide to the kinds of additional living expenses covered by your loss of use insurance:

Additional living expenses covered

  • Temporary residence such as hotel, motel or short-term rental.
  • Moving costs.
  • Grocery and restaurant bills.
  • Storage of furniture and personal belongings.
  • Laundry and dry cleaning services.
  • Transportation costs.
  • Parking fees.
  • Pet boarding.
  • Lost rental income.

Exceptions to consider

Flooding - Flood damage is handled separately from standard homeowners insurance policies. Therefore, if your home is uninhabitable due to flood, you won’t be covered by loss of use insurance during that time.

Earthquakes - Similarly to flood damage, earthquake damage requires an additional insurance policy. Without separate earthquake insurance, you’re financially responsible for repairs and any temporary living expenses.

Preexisting expenses - Loss of use insurance won’t cover any ongoing expenses you already had before the damage. This would include monthly mortgage payments, utility bills, property taxes and credit card bills.

Your insurance company can give you the details about any other important exceptions to loss of use coverage. The more you know about covered additional living expenses, the better peace of mind you’ll get from your homeowners insurance policy.

About the Author

Ari Koufos

I have been selling Real Estate in the Greater Boston Area since 1997. I am the Co-Founder & Current Broker/Owner of Realty Executives in Watertown. A lifelong resident of Watertown which I still reside with my Wife Debra and my Twins Emily & Christopher.  I am a  supporter of many local & national charities. One of my most rewarding fundraisers was as a rider in the PanMass Challenge in 2010,2011,2015 & 2016 raising over $50,000 over those 4 years for the Dana Farber Jimmy Fund. I am a 1988 Graduate of Bentley University in Waltham. I have extensive knowledge of all types of Real Estate participating in over 1000 transactions. I also have New Construction experience & specialize in condo conversions.  

Purchasing a home is one of the single most important investments in a person's life. With my expertise and guidance in the home buying and selling process, I can help find the most appropriate home for you. You can be assured that an experienced Real Estate Professional is working with your interests in mind. Please contact me on my cell at 617-799-8948 for a free consult if you are thinking of Buying or Selling your home.