A loss of use claim pays for the extra cost of living somewhere else when a covered loss makes a home unlivable. It’s usually Coverage D on a Florida homeowners policy, sometimes called additional living expense. After a fire, a major water loss or a hurricane, this coverage can matter as much as the repair payment.
The key word is additional. The coverage generally pays the increase over normal living costs. If a family pays a mortgage and normally spends a certain amount on groceries, the policy pays the difference created by the displacement, such as a hotel or rental, extra mileage, laundry and higher meal costs from eating out. The mortgage itself keeps getting paid by the homeowner.
Loss of use coverage has limits. It’s often capped as a percentage of the dwelling limit, and it usually lasts only for the shortest time reasonably needed to repair the home or for the family to settle elsewhere. A civil authority provision may also pay if officials order an evacuation because of nearby damage from a covered peril.
Documentation makes or breaks a loss of use claim. Receipts, lease agreements, hotel folios and a simple log of extra expenses show the insurer what was spent and why.
Jenkins Law P.L., a homeowners insurance firm in St. Petersburg, notes that insurers sometimes cut off living expenses while repairs are still stalled by the insurer’s own delays. When that happens, homeowners should ask for the decision in writing and keep the repair timeline that shows why the home still isn’t livable.
This article is general information and not legal advice. Every claim is different. The hiring of a lawyer is an important decision that should not be based solely on advertisements.
