Loss of use coverage, or “coverage D,” is an important part of a standard homeowners insurance policy. While other parts of your policy can help you pay to repair damages to your home, loss of use coverage is there to help you while repairs are being made.
Depending on how long you have to wait before you can move back into your home, the total cost of your living expenses can increase dramatically. Luckily, loss of use coverage pays for a variety of essentials beyond the limit of your dwelling coverage.
Here is a quick guide to the kinds of additional living expenses covered by your loss of use insurance:
Flooding - Flood damage is handled separately from standard homeowners insurance policies. Therefore, if your home is uninhabitable due to flood, you won’t be covered by loss of use insurance during that time.
Earthquakes - Similarly to flood damage, earthquake damage requires an additional insurance policy. Without separate earthquake insurance, you’re financially responsible for repairs and any temporary living expenses.
Preexisting expenses - Loss of use insurance won’t cover any ongoing expenses you already had before the damage. This would include monthly mortgage payments, utility bills, property taxes and credit card bills.
Your insurance company can give you the details about any other important exceptions to loss of use coverage. The more you know about covered additional living expenses, the better peace of mind you’ll get from your homeowners insurance policy.
With over 18 years of experience, Jessica is licensed New Hampshire and Massachusetts. A proud member of the National Association of Realtors, Jessica values the highest code of ethics and standards expected of her. As a seller’s agent, she uses the most current market information to properly value the property. In addition, with her experience she is able to assist sellers on the best ways to improve homes so they can solicit the highest offers. Jessica works with a cutting edge marketing & social networking firm to obtain the maximum exposure for all of her listings. Known for her negotiating skills, she has a passion for working with buyers providing knowledge of what to expect & peace of mind throughout the process. In addition to what Jessica provides as a buyers agent, she works closely with a team of experts so it’s a “one stop shop” for all her buyers. In addition to her real estate career, Jessica is also a licensed loan originator in N.H. Combined with her expertise in both real estate, mortgages and finance, Jessica has a full understanding on the home buying and selling process. In today's real estate market it is so important for sellers and buyers to work with an agent who has great skill set and experience.