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Loss of Use Home Insurance What You Need to Know

Homeowners insurance can help keep you protected in the event that a water main break, a house fire, a wildfire, or another covered peril causes damage that leaves your home uninhabitable. In today’s insurance blog, we take a closer look at what you need to know about loss of use coverage.

What is Loss of Use Coverage?

Loss of use coverage is a coverage on most standard Homeowners insurance policies that covers additional living expenses you incur if your home is deemed uninhabitable as the result of damage by causes of loss that are covered by your insurance policy. Some perils, like flood or earthquake, would not be covered unless you had special insurance to cover those. Loss of use coverage is also known as additional living expense (ALE) coverage or Coverage D in different Home insurance policies.

What’s Included in Loss of Use Coverage?

Loss of use coverage tends to cover any additional living expense that exceeds what you would normally spend. To put it simply, you’ll be covered for the necessary expenses you wouldn’t normally have to pay if you were living in your home. If, for example, your monthly grocery costs are typically $500, but you end up spending $650 a month because you have to eat out, your policy would cover the $150 difference.

While policies may vary, most policies have a loss of use coverage limit of 20-30% of your home’s insured value automatically built in. If you exceed the limit, you are then responsible to pay for those expenses out-of-pocket. Your insurance provider may also impose a dollar limit on certain types of necessary expenses. To better understand the specifics of your policy, we recommend you speak directly to your insurance agent.

Additional Living Expenses Examples

While there are many types of additional living expenses covered by most insurance policies, here are some of the most common:

  • Hotel expenses
  • Rent for temporary housing
  • Additional fuel or mileage expenses
  • Additional food expenses
  • Car rental
  • Clothing expenses
  • Storage unit fees
  • Parking costs
  • Pet boarding

How Loss of Use Coverage Reimbursement Works

If you have a claim, you will typically be required to fill out a form detailing your “normal living expenses.” From there, you are required to save your receipts from all living expenses incurred during the time in which you are displaced. The normal living expense total is then subtracted from your total expenses, which is what the insurance will pay, provided the types of charges are approved and the total remains below the loss of use coverage limit.

Why Choose Grange for your Homeowners Insurance?

At Grange Insurance Association, we understand that filing a claim often accompanies a stressful situation, so we do everything we can to make the claims process as easy, compassionate, and painless as possible. This testimonial from one our valued policyholders goes into greater detail about their experience filing a loss of use claim through Grange.

If you have any questions about your Homeowners insurance policy, be sure to reach out directly to your insurance agent. In the meantime, check out our insurance blog, where we cover important questions like what you need to know about Renters insurance and how to choose your Homeowners insurance deductible amount.


The content available via Grange.com is for informational purposes only and may not be used for any other purpose. Content provided or expressed on Grange.com, including that of third parties, may not reflect Grange Insurance Association’s (GIA) policies or conform to any agreement you may have with GIA and its subsidiary companies. Please contact a licensed insurance agent to obtain particular advice.

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