Coverage D

Reviewed by Stefan Tirschler

Updated May 30, 2023


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: Stefan Tirschler

Stefan is responsible for underwriting leadership, market expansion, and product research and development for Square One's operations. Stefan has earned his Fellow Chartered Insurance Professional designation, and maintains a level 2 general insurance license in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. Stefan is also an Education Committee member and CIP/GIE instructor for the Insurance Institute of Canada.


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