What does "loss of use" coverage provide?

"Loss of use" coverage is designed to compensate policyholders for additional living expenses incurred when their residence becomes uninhabitable due to a covered loss, such as a fire or severe water damage. In such situations, individuals may need to stay in a hotel or rent alternative accommodations until their home is repaired. This coverage helps ensure that homeowners or renters can maintain a standard of living by covering the higher costs associated with temporary housing and additional expenses while their primary residence is unusable.

The other options provided, while relevant to various aspects of insurance, do not align with the specific intention of "loss of use" coverage. For instance, compensation for property damage focuses on repairing or replacing damaged property rather than addressing living arrangements. Personal liability claims pertain to legal responsibility for damages to third parties, which is unrelated to the inability to use one's home. Health-related expenses are typically covered under separate health or medical insurance policies, not under the concept of loss of use.