What I have learned about Coverage D
What I have learned about Coverage D. There is a client who had a water loss, which resulted in damage to her flooring. Contractors were unable to begin repairs until after the new year, which leaves her family with concrete slab flooring in cold temperatures. She reached out to me for assistance, to see if there was anything her carrier Nationwide could do. I spoke with the claims manager, and we reviewed Coverage D (Loss of Use) in her policy. It was determined that Nationwide would reimburse the insured a “reasonable amount” for rugs to cover the concrete flooring, as well as consider the increased cost of the heating bill, due to the lack of floor coverings.  


Please remember that Coverage D covers any necessary increase in living expenses incurred by the insured so the household can maintain its normal standard of living, while the home is being repaired or rebuilt. Policy language and items covered may vary by carrier.    


The following things are the most covered expenses paid out by a typical homeowner policy’s loss of use coverage.  

  • Fair Rental Value for a hotel or rental property that’s an equivalent size and cost as the one you the insured was forced to leave.  
  • Food at the grocery store or restaurants.   
  • Gas due to commutes and errands being a longer distance than usual.  
  • Parking and transportation fees that wouldn’t have paid while in the home.  
  • Pet boarding due to a hotel or home not accepting them or someone having to care for them.  
  • Moving costs and temporary storage fees to protect personal belongings while the home is being repaired or rebuilt.  


Loss of use protection does not cover expenses that the insured was already responsible for before the loss like mortgage, insurance, childcare expenses, etc. This coverage is protection for additional expenses. For example, a family normally spends around $200 a week for food but are now staying in a hotel without a kitchen, they may need to eat out for most of their meals. Eating out costs $300 a week. Under loss of use coverage, the $100 additional expense per week would likely be covered.  


Please note policy language may differ by carrier.   


At Conner Insurance, we have set the standard for superior guidance and exceptional service for more than 70 years. Contact us at (317) 808-7711 to speak to one of our advisors. We serve clients across the entire country. Our headquarters is in Indiana and we have satellite offices to serve clients in all 50 states.  

Disclaimer: These monthly blogs contain general information and may be subject to change. Policy language may vary by insurance carrier, so please refer to the specific policy in question. The Claims Advocate does not make any representations that coverage does or does not exist for any claim or loss and in no way guarantees coverage for claims. 

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