Loss of Use coverage, known as Coverage D, protects property owners when a covered disaster makes a home temporarily unlivable. If homeowners are forced out of their homes due to damage from a covered peril, this coverage helps address the financial disruption and maintain their standard of living.
Depending on where the policy is in its lifecycle, liability coverage details can be found in two different locations within the portal:
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While Quoting: View and adjust this option on the Coverage tab.
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For Issued Policies: Find your active limits on the Policy tab.
Coverage
Depending on your policy type, Coverage D applies in the following ways:
- For HO-5 Policies: It covers additional living expenses such as hotel stays, temporary rentals, or increased grocery / dining costs incurred while displaced.
- For HO-3 Policies: It includes everything in the HO-5 policy, plus Fair Rental Value. If a covered loss makes a rented portion of a home uninhabitable, coverage will cover the lost rental income (minus any non-continuing expenses) for the shortest time required to repair or replace the space.
Unlike traditional insurance plans that cap Loss of Use coverage by a strict duration, our coverage is limit-based. Clients can fully customize their coverage limit, ranging anywhere from 0% to 100% of their Replacement Cost Estimate (RCE) to best fit their needs.
The above is meant as general information. This information does not modify any provisions, limitations, or exclusions expressly stated in any insurance policy. Descriptions of all coverages and other features on this page are necessarily brief; in order to fully understand the coverages and other features of a specific insurance policy, we encourage you to read the applicable policy. Whether an accident or other loss is covered is subject to the terms and conditions of the actual insurance policy or policies involved in the claim. References to general claims handling steps, average or typical premiums, amounts of losses, deductibles, costs of coverages/repair, etc., are illustrative and may not apply to your situation.
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