What does 'loss of use' coverage provide for the insured?

'Loss of use' coverage is designed to assist the insured when their home becomes uninhabitable due to a covered loss, such as fire or severe weather damage. This type of coverage provides compensation for additional living expenses that the insured incurs while residing away from their home. This can include costs for temporary accommodations, meals, and other necessary expenses that arise because they cannot live in their home during repairs or restoration.

For example, if a homeowner's residence is damaged and they need to stay in a hotel, 'loss of use' coverage would help cover those hotel costs alongside any additional living expenses that exceed their normal costs of living.

In contrast, coverage for lost personal items pertains to personal property protection, while compensation for damages to the dwelling addresses repairs to the structure itself. Coverage for medical expenses, on the other hand, typically relates to injuries sustained by individuals regardless of property damage. Thus, 'loss of use' distinctly focuses on the additional costs incurred during the period the insured cannot live in their home, making it a critical component of comprehensive homeowners insurance.