Why You May Need Loss-of-Use Coverage on Your Home

Loss-of-use coverage protects homeowners from paying both housing and living expenses after a covered disaster. Dogora Sun/ShutterstockIf your home is partially destroyed by a covered peril, you might need a place to live until repairs are made. The cost of additional lodging adds up quickly. That’s when loss-of-use coverage goes into effect.Loss-of-use coverage is usually part of a standard homeowner’s insurance policy. However, according to the Insurance Information Institute, state Fair Plans don’t typically provide loss-of-use coverage.