Loss of Use
Just before Halloween 2011, an angry nor'easter roared into Connecticut dumping more than a foot of snow in some areas. Because the leaves were still on the trees, thousands of people lost power as the weighted branches toppled onto electric lines. Up the road from us, a friend had a tree come down on her house. Luckily, no one was injured, but there was a gaping hole in the roof. The house was uninhabitable for a time. Our friend's insurance company paid her to stay in a hotel until a contractor fixed the roof.
If your home is destroyed, or is so damaged that you have to seek shelter elsewhere, a standard home insurance policy will pay to relocate you. So called "loss of use" coverage reimburses you for hotels, meals and any other living expenses. Most insurance companies pay up to 20 percent of the coverage price for loss of use expenses. That means if your house is insured for $200,000, your loss of use coverage is approximately $40,000 [source: Home Insurance].