What is a "loss of use" coverage in a homeowners policy?

"Loss of use" coverage in a homeowners policy pertains specifically to the situation where a residence becomes uninhabitable due to a covered peril. This type of coverage is designed to help homeowners manage additional living expenses incurred when they cannot live in their home. For example, if a fire renders the property uninhabitable, "loss of use" coverage would help pay for temporary accommodation and related expenses such as meals and transportation during the repair process.

This coverage is essential for homeowners because it alleviates the financial burden of having to find alternative living arrangements while ensuring that their daily living needs are met until their home is restored to livable conditions. It is distinct from other types of coverage that may focus on personal property, structural damage, or specific perils like natural disasters.