What does 'loss of use' coverage refer to in homeowners insurance?

'Loss of use' coverage in homeowners insurance specifically refers to the compensation provided when a policyholder is unable to live in their home due to a covered loss, such as a fire, storm, or other disaster that makes the dwelling uninhabitable. This coverage helps pay for additional living expenses incurred during the time the home cannot be occupied, such as rental costs for temporary housing, food expenses, and other related costs.

In this context, it is essential to recognize that 'loss of use' does not pertain to structural damage itself, personal property theft, or litigation costs. Structural damage is addressed under a different part of the homeowners policy, while theft coverage focuses on lost or stolen personal items. Litigation costs are part of liability coverage, which deals with legal actions taken against the homeowner for injuries or damages caused by their actions or property. Therefore, the focus of 'loss of use' on the inability to use the home reinforces its role in providing financial relief during an uninhabitable situation.