phrase · also: Coverage D, ALE
loss of use
In plain English
Coverage for the costs and lost rents while you can't use your property after a covered loss.
On a homeowners policy, this is Coverage D — pays for hotel and meals while your house is being rebuilt. On rental property, it pays the rent you would have collected. On auto, it pays for a rental car after a covered loss.
What it covers
Either additional living expense (homeowners), fair rental value (landlord), or rental reimbursement (auto), depending on the policy. Triggered by a covered cause of loss that makes the property unusable.
What it does not cover
It is NOT triggered by uncovered events. If a non-covered cause makes the home unusable, no loss-of-use coverage either.
Where it trips people up
Auto rental reimbursement is usually capped at $30/day for 30 days as a default — totally inadequate if you actually need a comparable rental. Increase the daily limit at every renewal.
The technical version
Coverage for the loss of use of property due to a covered cause of loss, including additional living expense, fair rental value, or rental reimbursement.