Unlimited Loss of Use

On my home policy it says that I am covered for unlimited loss of use. Does this mean my home will be replaced at whatever the replacement cost is?



No. "Loss of use" refers to coverage to compensate you, the insured, for the loss of use of your property if it cannot be used because of a peril covered by the policy. Unlimited would refer to the time period for which the loss of use coverage remains in place. In some policies, "loss of use" will be limited to a certain time period.


Read your policy carefully. There may still be a dollar limit on the loss of use benefit.


In any case, if you had coverage to pay you replacement value, it would be referred to as either "replacement cost" or replacement value coverage.

Posted by editor@insuranceguide101.com on November 2,2006 at 7:43 PM
What you are referring to is "living expenses", and what you are covered for depends completely on your policy. Do keep in mind that "loss of use" coverage does not mean that you have "living expenses" coverage.
Posted by damon on November 2,2006 at 10:05 AM
My house was completely destroyed by fire.  What specific items (other than rent, restaurant meals and laundry services) can be claimed under a loss of use policy?
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