Registered Insurance Brokers of Ontario (RIBO) Practice Exam

What does Loss of Use coverage typically assist with?

1. Replacement of personal items

2. Covering additional living expenses

3. Compensation for lost wages

4. Reimbursement for property repairs

The correct answer is: Covering additional living expenses

Loss of Use coverage is primarily designed to assist with covering additional living expenses incurred when a home becomes uninhabitable due to a covered peril, such as a fire or flooding. This coverage helps policyholders manage costs associated with temporary accommodations, meals, and other living expenses that arise while repairs to the home are being made. While other options mention important aspects of insurance, they don't align with the specific purpose of Loss of Use coverage. Replacement of personal items relates to coverage for personal property. Compensation for lost wages pertains to income protection, and reimbursement for property repairs directly involves property insurance coverage rather than additional living expenses. Thus, the focus on additional living expenses is what makes the correct choice relevant to Loss of Use coverage.