In a property insurance policy, what does the term "loss of use" refer to?

The term "loss of use" in a property insurance policy specifically pertains to the additional living expenses incurred when a home becomes uninhabitable due to a covered loss, such as fire or water damage. This coverage allows policyholders to receive compensation for expenses such as temporary housing, meals, and other necessary costs incurred as a result of the displacement.

Understanding this concept is important as it ensures that policyholders are aware of their rights to financial assistance for living expenses while they are unable to reside in their own homes due to damage that is covered under their policy. In this context, "loss of use" does not relate to personal property losses, legal fees, or damages to structures, all of which fall under different aspects of property insurance coverage. By focusing specifically on additional living expenses, this term highlights one of the critical protections that homeowners can rely on during challenging times following a loss.