Step 1: Rewrite the given equation.
The equation
\[
|x+y|=2
\]
can be written as two straight lines:
\[
x+y=2
\]
and
\[
x+y=-2
\]
Step 2: Find the intercepts on the coordinate axes.
For the line
\[
x+y=2
\]
When \(y=0\),
\[
x=2
\]
So, one intercept is \((2,0)\).
When \(x=0\),
\[
y=2
\]
So, another intercept is \((0,2)\).
For the line
\[
x+y=-2
\]
When \(y=0\),
\[
x=-2
\]
So, one intercept is \((-2,0)\).
When \(x=0\),
\[
y=-2
\]
So, another intercept is \((0,-2)\).
Thus, the four vertices of the rhombus are
\[
(2,0),\;(0,2),\;(-2,0),\;(0,-2)
\]
Step 3: Find the diagonals of the rhombus.
The horizontal diagonal is from \((-2,0)\) to \((2,0)\).
Its length is
\[
4
\]
The vertical diagonal is from \((0,-2)\) to \((0,2)\).
Its length is
\[
4
\]
Step 4: Use the area formula of a rhombus.
Area of a rhombus is given by
\[
\text{Area}=\frac{1}{2}\times d_1 \times d_2
\]
where \(d_1\) and \(d_2\) are the diagonals.
Substituting the values,
\[
\text{Area}=\frac{1}{2}\times 4 \times 4
\]
\[
=8
\]
Step 5: Final conclusion.
Hence, the area of the rhombus is
\[
\boxed{8}
\]