What Is Loss of Use Coverage in Homeowners Insurance?
Loss of use (also called additional living expenses) pays for hotels, meals, and other extra costs when a covered event forces you out of your home — so you can maintain your normal standard of living.
Core Coverage
By the Home & Dime Editorial Team · Updated 2026
What it covers
- Hotel or temporary rental costs.
- Extra food costs above your normal spending.
- Storage, pet boarding, and extra commuting.
How much
Usually 20–30% of your dwelling limit, paid until repairs are done or the limit is reached.
Common exclusions
- Displacement from a non-covered event (e.g., flood)
- Your normal living costs (only the extra is covered)
- Voluntary relocation
State considerations
Coverage works similarly nationwide, but displacement from excluded perils (like floods) isn’t covered — a reason flood insurance matters in high-risk states.
Claim tips
- Keep all receipts while displaced.
- Track expenses above your normal spending.
- Confirm your loss-of-use limit and time cap.
Frequently asked questions
How much loss of use do I have?
Typically 20–30% of your dwelling coverage.
Does it cover flood displacement?
Only if a flood policy provides it — standard policies don’t.
Related guides
Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.
Part of our Homeowners Insurance guide
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