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Loss of use — also called additional living expense — pays the extra costs of living somewhere else while your home is uninhabitable after a covered loss. Think rent, hotel, meals above your normal grocery spend, pet boarding, and storage. It is usually a percentage of your dwelling limit.
What you need to know
How much you actually need
Match it to a realistic rebuild timeline and local rent. In much of Los Angeles County, twelve months of comparable housing is a large number.
Time limits vs. dollar limits
Some policies cap dollars, some cap months, some do both. Read which one applies before you need it.
It only follows a covered loss
If the underlying peril is excluded, loss of use does not pay. That is another reason flood and earthquake gaps matter.
Common mistakes
- Insuring the home to market value or loan balance instead of today's rebuild cost.
- Leaving liability at the lowest available limit with no umbrella above it.
- Assuming flood and earthquake are included — both are separate in California.
- Never scheduling jewelry, art or other items that carry low special limits.
- Filing small claims that cost more in renewal pricing than they paid out.
When to talk to an agent
Talk to an agent when your premium jumps, when you renovate or rent out the home, when you are told you are being non-renewed, or any time you cannot tell from the declarations page what your policy would actually pay.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.