What is the primary purpose of loss of use coverage in an insurance policy?

Loss of use coverage, also known as additional living expenses (ALE) coverage, is specifically designed to reimburse policyholders for the costs of living away from their home when it becomes uninhabitable due to a covered peril, such as a fire or serious water damage. This type of coverage ensures that individuals can maintain a standard of living while their property is being repaired or restored.

Under this coverage, expenses may include costs for temporary housing, increased utility bills, and other necessary living expenses incurred as a result of the property being unusable. This aspect of insurance is crucial because it supports the policyholder in a time of distress, allowing them to focus on recovery and rebuilding rather than worrying about financial strain from living expenses.

In contrast, other options relate to different aspects of insurance coverage that do not align with the primary function of loss of use. Medical attention, cash value for damaged items, and legal fees associated with property disputes are addressed through other specific insurance policies or endorsements, but they do not provide support for living conditions when a home is uninhabitable.