Homeowners insurance in New York: Loss Of Use Coverage
Loss of use coverage in Homeowner insurance, also known as Coverage D, provides you with basic living support if your home becomes uninhabitable due to a peril. Loss of use insurance covers additional living expenses like hotel bills, fair rental values, laundry, parking, moving costs, temporary storage of your stuff, and so on.
Here is an example of additional living expenses: suppose you are living in an apartment in Manhattan with $2000/month rent, and your other expenses are like $800/ month. It is winter, your pipe bursts and it is not your fault. Your personal properties like clothing and shoes are ruined, and you will also need to clear out for a week but still pay rent.
Suppose you get a hotel room for $1000, and pay for food here at $500, your insurance company will most likely pay you for the extra $1200 (hotel+ increase in food costs). Note that the insurance will cover for the shortest time possible, in this case, it will be a week.
