Typically, what percentage of the dwelling coverage is allocated for Loss of Use in a Homeowners Policy?

In a standard Homeowners Policy, the allocation for Loss of Use coverage is generally set at 20% of the dwelling coverage. This provision is designed to cover additional living expenses that a homeowner incurs if their residence becomes uninhabitable due to a covered peril, such as fire or storm damage. This percentage typically provides sufficient funds to assist homeowners in meeting their temporary living arrangements, such as hotel stays or rental expenses, during the time when their home is being repaired or rebuilt. Understanding this allocation is crucial for homeowners to plan adequately for unexpected events that may disrupt their living situation.