Loss of Use Runway

Step by step

1. Loss-of-use limit = dwelling limit × the loss-of-use percentage (commonly 20%–30%).
2. Reimbursable monthly cost = temporary housing cost minus an illustrative 15% treated as your normal living expense. Because the limit pays only that increase, the offset makes the limit last longer in months, not shorter.
3. Falls to you each month = temporary housing cost minus the reimbursable cost. The offset is not money the policy pays; it is the share of housing the household keeps funding while the limit runs.
4. Months covered = limit ÷ reimbursable monthly cost, to one decimal.
5. Months short = expected rebuild months minus months covered, never below zero.
6. Mortgage across the rebuild is shown separately because it continues regardless and comes from the same budget.
7. Model note: this tool divides the limit by the reimbursable increase in living costs. The Renters Coverage Check divides its loss-of-use figure by full monthly rent as a simpler yardstick, so the two month figures are built differently and are not directly comparable.

The formula

Months covered = (Coverage A × loss-of-use %) ÷ (monthly housing × (1 − normal-living offset)). Falls to you each month = monthly housing − reimbursable monthly cost.

Assumptions and their default values

Some of these change with the state you select.

Important disclosures

1. This tool is educational only. It illustrates potential exposure using the assumptions shown — it is not insurance advice, a price, or an offer of coverage, and it does not determine whether any coverage amount is right for you. Policy language varies; review your actual policy and discuss your situation with a licensed insurance professional.
2. Loss-of-use coverage reimburses additional living expenses actually incurred and documented, subject to your policy limit and, on many policies, a time limit as well as a dollar limit. Some policies cap the period regardless of the amount remaining.
3. Rebuild timelines vary enormously with permitting, contractor availability, and whether a wide area was affected by the same event — regional catastrophes lengthen them considerably.
4. The share of housing cost treated as your normal spending is an illustrative assumption, not a policy term. Carriers calculate the additional-expense portion their own way.