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  • Writer's pictureCharlotte Burr

Understanding Loss of Use Coverage: A Guide for Homeowners


Loss of use coverage also known on insurance statements as coverage D gives you financial reimbursement when your home or apartment is considered unlivable due to an accident that your insurance covers. For example, if your house burned down and it was going to take 9 months to rebuild it, the insurance company would cover the costs of living and some food expenses depending on your coverage rate.


Loss of use coverage can cover these types of expenses depending on your rate:

  • Housing expenses (hotels, temporary rental, etc.)

  • Utilities costs

  • Grocery expenses (restaurants, cooking utensils, groceries, etc.)

  • Travel expenses (gas and public transportation)

  • Storing costs

  • Moving costs


As a homeowner, it is important to know your loss of use limit which is the maximum amount your insurance company is willing to pay out. For Homeowners insurance, this will sometimes depend on your dwelling coverage as it might be a certain percentage of it or it could be a flat amount.


It is also important that you know that loss of use insurance will cover your "regular" expenses and not costs that go over your usual budget. For example, if your grocery bill is usually $200 a month and you spend $400, the insurance company will only cover $200. It is important to keep track of all of your expenses as well as insurance companies require receipts so that they can reimburse you accordingly.


At AZ Insurance Team we do the shopping for you to get the best insurance rate for the best price. Give us a call today!


Independent insurance brokerage located in Tempe, AZ. We offer auto insurance, homeowners insurance, life insurance, renters insurance, commercial insurance…

Disclaimer: Coverage will vary on state, insurance company, and type of policy.

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