Most loss of use insurance provides coverage based on the cost of the residence. Coverage is generally 20 percent of the cost of the home. A home valued at $200,000, for instance, would typically have loss of use coverage of $40,000. There may be extra endorsements and premiums associated with loss of use insurance, which can be combined with similar coverage, such as property collapse, debris removal and reasonable repair.

Loss of use policy review.

It is important to read the loss of use provisions carefully prior to filing a claim. Issues can arise with reasonable living expenses. If a person rents a home that is much larger than their normal residence, for example, the insurance company would not consider that a reasonable expense claim. The loss also has to be related to events that are covered in the homeowner’s insurance policy. For example, floods are usually excluded in a standard homeowner insurance policy, so loss of use could not apply if your home was uninhabitable due to flooding.

Coppermark Public Adjusters can help you review your policies to be sure you understand the covered events and coverage amounts. Since loss of use insurance coverage only relates to the actual time you cannot live in the home, we will work with you throughout the entire process so you are not left with additional uncovered expenses. We can also oversee the repair process so you can get back in your home as quickly as possible.