Loss of use cover means that if you cannot stay in your caravan as a result of loss or damage that has happened while in use and you then decide to continue with your holiday, your policy will cover extra costs incurred, up to predefined limits.
Typically these costs may include:
- hotel accommodation costs (not including food and drink) up to a set amount per day and for typically up to 14 days;
- the costs for hiring a replacement caravan up to a set amount per day, again, typically up to 14 days.
For static caravans which you let to paying guests, the loss of use cover typically pays for the loss of hiring charges booked before the loss or damage occurred. For example:
- you take a two week booking for a family to stay in your static home in August;
- in July, something happens to your static caravan rendering it uninhabitable (such as fire or flood damage).
As long as the reason that your static home cannot be used is due to an insured event, then your policy will help you recoup the loss of rent for that period (subject to an excess).
Park homes do not have loss of use cover per se, as they are a permanent residence. What is covered, however, and up to set limits, are any additional costs of alternative accommodation, which you have to pay for while your home cannot be lived in following loss or damage, again due to an insured event.
Typically, any alternative accommodation needs to substantially the same as your existing accommodation.