What typically triggers the need for a loss of use claim?

A loss of use claim is typically triggered when a covered event causes damage to a dwelling, making it uninhabitable. This situation means that the homeowner is unable to live in their home and may incur additional living expenses while they are displaced. In this context, “covered loss” refers to incidents specifically outlined in a property insurance policy, such as fire, water damage, or other perils that lead to significant damage. As a result, the homeowner is allowed to seek compensation for the extra costs associated with finding alternative housing or living arrangements until their home is repaired and made livable again.

General wear and tear, selling the property, or minor repairs do not typically qualify for a loss of use claim as they do not render the property uninhabitable and do not result from an insurable event. Loss of use is specifically designed to address the consequences of covered losses that directly impact a homeowner's ability to occupy their residence.