Glossary

Loss of use (Coverage D)

Coverage that pays extra living costs or lost rent when a covered loss makes your home unfit to live in, such as hotel bills or a tenant's missed rent.

Also called: Coverage D, living expense coverage

Loss of use, or Coverage D, pays when a covered loss makes your home unfit to live in. It has three parts: additional living expenses for your household, fair rental value if you rent out part of the home, and a civil authority provision for when officials bar you from the house because of damage to a neighbor's property. In the ISO form the civil authority benefit lasts no more than two weeks.

The default limit in the ISO form is 30% of the Coverage A (dwelling) limit, so $120,000 on a $400,000 home. Some insurers instead cap the coverage by time, such as 12 or 24 months, or write it as a flat dollar amount. The difference matters after a large loss, because rebuilding from a fire or hurricane can take well over a year.

Coverage D does not pay for repairs. It pays the increase in what you spend, or the rent you lose, while repairs are underway. Keep every receipt from the day you leave, and ask what happens if the dollar limit or time limit runs out before the house is ready.

The guide to Coverage D explains how claims run, and the additional living expenses (loss of use) calculator helps you estimate what a year away from home might cost.

Last reviewed October 10, 2026

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Related terms

Additional living expenses The increase in your normal costs of living, such as hotel bills, restaurant meals and extra mileage, after a covered loss forces you out of your home. Fair rental value Payment for the rent you lose when a covered loss makes a part of your home that you rent to someone else, or hold for rent, unfit to live in. Dwelling coverage (Coverage A) The part of a homeowners policy that pays to repair or rebuild the house itself, including attached structures such as a garage, porch or deck. Policy limit The most an insurer will pay for a covered loss under one coverage, set separately for the house, other structures, belongings, living costs and liability. Personal property (Coverage C) Coverage for the movable things you own, such as furniture, clothing, electronics and tools, whether they are at home or elsewhere in the world.

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Related tools

How much homeowners insurance do I need? Set a target for each coverage in a homeowners policy, from rebuild cost to liability, then compare it with your current limits. Additional living expenses (loss of use) calculator Estimate your monthly extra living costs if a covered loss forces you out of your home, and how many months your loss of use limit would last.