Coverage D

Reviewed by Daniel Mirkovic

Updated February 23, 2024


cov·er·age d | ˈkəv-rij ˈdē

Definition: The section of a home insurance policy that reimburses insureds for additional expenses incurred when their insured dwelling is made temporarily unfit for habitation due to an insured peril.

Coverage D of Ronald’s house insurance covered his extra expenses while he stayed in a hotel following the fire.

What is Coverage D?

Most home insurance policies in Canada are based on the standard homeowner’s forms from the Insurance Bureau of Canada (IBC). These standard forms divide the different coverages and name the divisions A through G. Many insurers keep this naming scheme on their own policies.

Square One doesn’t use the A-G naming scheme; our policyholders can find the equivalent coverage within Section 4 – Loss of Use Coverages. “Loss of Use” is the common term for the coverages within Coverage D.

Loss of Use coverage comes into play when you can’t live in your home temporarily after an insured loss. For example, if you need to stay in a hotel for a few weeks while fire damage to your home is repaired.

Coverage D will pay for the added cost of the hotel, plus other extra living expenses during that time. If you rent your home or a part of your home, Coverage D will also cover lost rental income during the period your tenants can’t live there.

If you’d like to know more, make sure to check out our full definition for Loss of Use coverage.

The important points

  • Coverage D contains Loss of Use coverages.
  • It covers additional expenses when you can’t occupy your home following a loss.

Looking for another insurance definition? Look it up in The Insurance Glossary, home to dozens of easy-to-follow definitions for the most common insurance terms. Or, get an online quote in under 5 minutes and find out how affordable personalized home insurance can be.

About the expert: Daniel Mirkovic

A co-founder of Square One with 25 years of experience in the insurance industry, Daniel was previously vice president of the insurance and travel divisions at the British Columbia Automobile Association. Daniel has a bachelor of commerce and a Master of Business Administration (MBA) from the Sauder School of Business at the University of British Columbia. He holds a Canadian Accredited Insurance Broker (CAIB) designation and a general insurance license level 3 in BC, Alberta, Saskatchewan, Manitoba and Ontario.


Get a free quote

Get a personalized online home insurance quote in just 5 minutes and see how much money you can save by switching to Square One.

Get an online quote now


Protect your family

Even when you take precautions, accidents can happen. Home insurance is one way to protect your family against financial losses from accidents. And, home insurance can start from as little as $12/month.

Learn more