Loss of use coverage is a component of a home insurance policy that pays for additional housing costs and living expenses when your home is uninhabitable due to a problem covered by your...
In short, if your home is uninhabitable due to a covered peril or prohibited use, loss of use coverage protects you from the extra costs of living elsewhere. There is a slight difference between loss of use in a homeowners policy and a renters insurance policy.
Also referred to as additional expenses insurance or part D coverage, loss of use homeowners insurance covers living expenses that you incur if your home is deemed uninhabitable as the result of a covered peril.