How Loss of Use Coverage Can Help During Disaster Restoration
Also known as additional living expenses (ALE) or coverage D, loss of use
coverage pays for additional costs you may incur if you can’t live in your
home while it is being repaired or rebuilt. While homeowners’ insurance is
not required by law in Montana, many lenders do require you to have it
before purchasing a home.
These are the expenses that loss of use insurance pays for:
Temporary housing– This may include a hotel, motel, or rental
Moving expenses – If you need to store your household items or move
them from one place to another, your loss of use coverage will reimburse
you for these costs.
Laundry– If your temporary living quarters are a hotel, you’ll
likely incur additional expenses from washing your clothes in the
facility’s laundry room or at a laundromat.
Pet boarding – If you’re residing in a location that does not
allow pets, you’ll need to pay for a boarding facility.
Restaurant bills– If you’re staying in a hotel or motel, you may
need to dine out more often because you don’t have access to a kitchen.
Additional car mileage or public transportation Your temporary
dwelling may be farther from your work, resulting in additional
Loss of use coverage does not pay for costs that you were paying before
the incident, such as your mortgage or child care expenses.