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.
For further assistance, contact us via our webform or Live Chat.