What does "loss of use" mean in property insurance terms?

"Loss of use" in property insurance refers specifically to coverage that provides for additional living expenses incurred when a home becomes uninhabitable due to a covered loss. This means that if a policyholder cannot live in their home because of events such as fire, water damage, or other peril covered by their insurance policy, the "loss of use" coverage will help pay for temporary housing, such as hotel bills or rent for a new place, as well as any additional living expenses that arise during this period.

This aspect of insurance is crucial for policyholders, as it supports them financially when they are displaced from their homes, ensuring they can maintain their standard of living while repairs or rebuilding is undertaken. The key point is that this coverage focuses on the loss of the ability to use the home rather than on the loss of property itself or coverage over usage restrictions.