Loss of use coverage in NC homeowner's insurance: what it pays for

What is loss of use coverage on a NC home insurance policy?

Loss of use coverage (Coverage D, also called additional living expenses or ALE) pays for temporary housing and increased living expenses when a covered claim makes your home uninhabitable. It covers the difference between your normal living costs and the higher costs of temporary arrangements.

What expenses does loss of use coverage pay for in NC?

Hotel or rental housing costs, restaurant meals (above what you'd normally spend on groceries), laundry, storage for belongings, pet boarding if your temporary housing doesn't allow pets, and other expenses you wouldn't have if your home were livable. Keep all receipts.

How long does loss of use coverage last in NC?

Coverage D typically pays until your home is repaired and habitable, or until the coverage limit is exhausted. Some policies set a time limit (e.g., 12 or 24 months); others are limited only by the dollar amount. Know your policy's structure before a claim occurs.

How much loss of use coverage do NC homeowners typically have?

Coverage D is often set at 20% to 30% of your dwelling coverage (Coverage A). On a $300,000 home, that's $60,000 to $90,000 in ALE coverage. For most claims, this is sufficient. Major disasters with long displacement periods can test those limits, particularly if rental markets are tight after a widespread event.