Home & Property

Coverage D (Loss of Use)

The homeowners policy section paying for additional living expenses when a covered loss makes the home temporarily uninhabitable.

Last reviewed: May 2026 · Editorial methodology

Definition

Coverage D (also called additional living expenses or ALE) reimburses the policyholder for the reasonable increased cost of living while the home is being repaired or rebuilt after a covered loss. Covered expenses include hotel stays, restaurant meals above the normal grocery budget, laundry costs, pet boarding, and similar costs that exceed what the household would normally spend. Standard Coverage D limits are 20–30% of the Coverage A limit, providing $80,000–$120,000 in ALE for a $400,000 home. Benefits are paid for the shortest of the time needed to repair the home or the policy limit period (often 12–24 months). After major California wildfires, some policyholders exhausted their Coverage D limits while awaiting contractor availability in a market overwhelmed by simultaneous rebuilds. For rental properties, Coverage D is replaced by fair rental value coverage under DP-2 and DP-3 forms, which pays lost rental income rather than the owner's living costs.

Where this term matters

Home Insurance →Renters Insurance →Claims Help Center →

Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Loss of Use (ALE)Coverage D on home/renters — pays additional living expenses if your home becomes uninhabitable.Coverage A (Dwelling)The homeowners policy section that covers the main structure of the home against damage from covered perils.Dwelling CoverageCoverage A on a homeowners policy — pays to repair or rebuild your home's physical structure.

Related guides

Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
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Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

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