Loss of use coverage is a type of insurance that is typically included in a homeowners or renters insurance policy. It is also known as additional living expenses (ALE) insurance or Coverage D. This coverage helps pay for the additional costs you might incur for reasonable housing and living expenses if a covered event makes your house temporarily uninhabitable while it’s being repaired or rebuilt. Loss of use coverage reimburses you for living costs that exceed your normal expenses, such as hotel stays, rental apartments, restaurant bills, laundry expenses, transportation fees, parking fees, and pet boarding. The coverage limit is typically based on your dwelling coverage and calculated at about 20% to 30% of the dwelling coverage limit. Loss of use coverage only applies when your home is damaged in a covered peril. It wont cover any and every cost, and there may be exclusions, so its important to read your policys fine print to understand the limitations.