What Loss of Use Coverage Can Do for You

In the event that your home is damaged or destroyed, the portion of a standard homeowners insurance policy that protects you is loss of use. Essentially, many living expenses, restaurants, and hotels are all expenses that are reimbursed with this type of coverage. In the event of a disaster, to help you maintain your standard of living, loss of use coverage is what you look to.

Ultimately, you are securing an alternative dwelling in case your home is rendered uninhabitable when you purchase loss of use coverage as part of your homeowners insurance policy. The insurance will pay for a hotel room or other lodging if a normal person could not be expected to stay in your home. This extends until the issue is rectified.

Usually, 20% of the dwelling coverage is what standard home insurance policies provide coverage for. This means that your loss of use coverage would be roughly $40,000 if you have $200,000 worth of dwelling coverage. All of this is meant to protect you in case any major event occurs where you have to leave your home.

To learn more about loss of use coverage, contact North American Advantage Insurance Services.