In insurance policy terms, what does "loss of use" refer to?

"Loss of use" specifically pertains to the costs incurred when a home becomes uninhabitable due to damage covered by an insurance policy, such as from fire, flood, or other disasters. When such an event occurs, the insured may need to temporarily relocate while repairs are being made. This situation includes expenses for additional living costs, such as renting a hotel or apartment, and meals that are typically prepared at home.

This term is essential in property insurance policies as it ensures that the policyholder is not left financially burdened during the period they cannot occupy their dwelling. Thus, coverage under "loss of use" acts as a safety net, allowing the insured to maintain their standard of living while their property is being restored.

In contrast, other options do not accurately reflect the definition of "loss of use." Total loss of personal belongings describes a different coverage area related to personal property. Devaluation of the property pertains to the decrease in market value over time, which is not directly linked to policy provisions for loss of use. Lastly, coverage for damage to other structures relates to separate coverage within a homeowners policy but doesn't encompass living expenses when the primary residence becomes uninhabitable.