What does 'Loss of Use' coverage provide under a Homeowner's policy?

Loss of Use coverage under a Homeowner's policy is designed to provide financial assistance for temporary living expenses that policyholders may incur if their home becomes uninhabitable due to a covered peril, such as a fire or severe water damage. This coverage typically includes expenses for lodging, meals, and other necessary expenses that arise when homeowners cannot live in their own home while repairs are being made. It aims to alleviate the financial burden during the period the home is unlivable, ensuring that policyholders can maintain a reasonable standard of living while their property is restored. This type of coverage is an essential component of a comprehensive homeowner's insurance policy, as it demonstrates the policy's intent to support homeowners not just in repairing their property but also in managing the additional costs of temporary relocation.