When reviewing your homeowners insurance, it’s easy to focus on the parts that protect your home and belongings. But Coverage D—also known as Loss of Use coverage —is just as important. It steps in when a covered loss forces you to leave your home, helping you maintain your standard of living while repairs are underway.

What Is Coverage D?

Coverage D: Loss of Use pays for additional living expenses if your home becomes uninhabitable due to a covered peril. This protection helps you manage the extra costs of temporary living arrangements and day‑to‑day needs.

What Coverage D Typically Includes

• Temporary housing: Hotel stays, short‑term rentals, or other living arrangements.
• Increased food costs: Meals and groceries that exceed your normal spending if you can't cook at home.
• Transportation expenses: Added travel costs related to the loss.
• Laundry and storage: Extra fees you incur while displaced.
• Pet boarding: If your temporary housing doesn’t allow pets.

When Coverage D Applies

Loss of Use coverage only kicks in when the reason you must leave your home is connected to a covered peril —such as a fire, wind damage, or other event included in your policy. For Outer Banks homeowners, this often includes hurricane‑related damage, wind‑driven rain (depending on your policy), and more.

Additional Features You May See

• Fair Rental Value: Reimburses lost rental income if a covered loss makes a rental portion of your home uninhabitable.
• Prohibited Use: Covers living expenses if authorities restrict access to your home—even if it isn’t damaged—due to a nearby covered event.

Why Coverage D Matters on the Outer Banks

Between hurricanes, nor’easters, and coastal wind events, temporary displacement isn’t uncommon in our area. Loss of Use coverage helps ensure that when disaster strikes, you have a safe, comfortable place to stay without taking on heavy unexpected expenses.

Need Help Reviewing Your Policy?

Since 1973, our team at Midgett Insurance Agency has helped Outer Banks homeowners understand and customize their coverage. If you want to make sure your Coverage D limits are adequate—or simply have questions—we’re here to help.