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 Maria never thought her kitchen fire would leave her family living out of suitcases. The fire itself was small—an oven mishap that spread smoke and heat damage through the cabinets and ceiling. But when the contractor said it would take three weeks to repair, she realized they couldn’t stay in the house. The smoke smell was overwhelming. She turned to her home insurance agent and asked the question: “Does my policy pay for a hotel while we’re out of the house?” That’s where Loss of Use coverage—also called Additional Living Expenses (ALE)—comes in. What Is Loss of Use Coverage?Most standard homeowners insurance policies in Oklahoma include a section labeled Loss of Use or Coverage D. This part of the policy helps pay for the extra costs of living somewhere else if your home becomes unlivable due to a covered loss—like fire, storm damage, or a burst pipe. It’s not just about hotels. It can cover a lot more. What Does It Typically Cover?Loss of Use helps maintain your normal standard of living when your house is being repaired or rebuilt. Here’s what it may pay for: 1. Temporary Housing This can include hotel stays, short-term rentals, or even a long-term apartment if the rebuild takes months. The amount covered depends on your policy limits. 2. Meals If you don’t have access to a kitchen and need to eat out more often, your policy may reimburse the extra cost over your usual grocery bill. 3. Laundry and Transportation Extra costs like laundromat use, additional commuting distance from temporary housing, or even pet boarding may be reimbursable. 4. Furniture Storage If your belongings need to be moved or stored during repairs, that cost could be included. When It Kicks InLoss of Use coverage only activates when the damage is caused by a covered peril in your policy. That could include:
If your home is being repaired or deemed unsafe to live in—even temporarily—this coverage may apply. What’s Not Covered?Like everything in insurance, there are limits. Here are a few things Loss of Use usually doesn’t cover:
It also won’t cover your mortgage or property taxes during that time—just the additional expenses you incur from being displaced. Coverage Limits: How Much Can You Expect?Policies in Oklahoma City typically offer Loss of Use coverage as a percentage of your dwelling coverage—often 20% to 30%. For example, if your home is insured for $300,000 and your Loss of Use limit is 30%, you’d have $90,000 available for temporary living costs. That may sound like a lot—but during long repairs, those funds go quickly. Always check your policy limit and time limit. Some policies cap ALE at 12 months, even if the dollar amount hasn’t been exhausted. Tips for Using Loss of Use Coverage WiselyIf disaster strikes, here’s how to stay on top of things:
Don’t Wait Until You’re Displaced to Understand Your CoverageMost homeowners never read the Loss of Use section of their policy—until they need it. But knowing what’s covered and how it works could save you from paying out-of-pocket during one of life’s most stressful moments. At Oklahoma Insurance Professionals, we help homeowners in Oklahoma City and surrounding areas understand what their home insurance actually covers. As an independent insurance agency, we don’t push one-size-fits-all policies. We help you find the right fit for your life and your neighborhood. Contact us today to review your current policy and see if your Loss of Use coverage is strong enough to keep you comfortable—if disaster ever knocks on your door.
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