What does "loss of use" coverage involve?

"Loss of use" coverage refers specifically to the compensation provided for the inability to use a property while it is undergoing repairs after a covered loss, such as a fire or natural disaster. This type of coverage is essential for policyholders because it helps cover additional living expenses, such as temporary housing or increased commuting costs, when they cannot occupy their home due to damage.

The focus of this coverage is on the disruption of the policyholder's normal living conditions rather than on direct physical damage to the property, rental income loss, or personal belongings. By providing financial assistance during the repair period, loss of use coverage ensures that individuals are not financially burdened and can maintain a certain standard of living while their property is being restored.