Loss of use coverage, sometimes called additional living expenses, is the quiet safety net included in most Texas homeowners policies. When a wind-driven hailstorm splinters windows or a kitchen blaze forces a family out of their home, this rider bridges the gap by paying for a comparable place to stay until the house is repaired. It may seem abstract on paper, but it becomes invaluable when the first hotel bill arrives and reality sets in. As your representative at InsPeak, serving Arlington, TX, we want you to understand this important part of home insurance.
How Loss of Use Coverage Works
This benefit activates only after a covered peril leaves the residence uninhabitable. Your insurer measures normal household spending, compares it with the costs of daily life in temporary quarters, and pays the difference. Reimbursements are drawn from a limit tied to dwelling coverage, often 20 to 30 percent, though some carriers allow higher caps. Payments continue until repairs are completed or you reach the policy’s time or dollar limit, whichever comes first.
Expenses It May Cover
- Short-term lodging, such as hotels or furnished rentals
- Meals, when cooking at home is impossible
- Extra mileage or public transit to work, school, or medical care
- Pet boarding, storage fees, or coin-operated laundry
Know Your Limits and Exceptions
Loss of use coverage only applies when the underlying damage is caused by a peril named in the policy. It does not cover routine wear, long-term neglect, or separate exclusions like flooding unless you have purchased flood insurance. If you work from home, ask how the carrier handles co-working fees or equipment rentals, as some will reimburse these costs while others will not.
When a disaster displaces your family, the right loss of use coverage can turn upheaval into a temporary inconvenience rather than a financial crisis. Talk with your home insurance representative today at InsPeak, serving Arlington, TX, to confirm your limits, discuss local cost trends, and ensure your policy can keep daily life on track even when your house cannot.
