Under a homeowners policy, what is "Coverage D"?

"Coverage D" in a homeowners policy refers to loss of use coverage for additional living expenses. This coverage is designed to help homeowners who experience a loss that makes their home uninhabitable. In the event of a covered peril, such as fire or significant water damage, Coverage D will pay for additional living expenses incurred while the home is being repaired or rebuilt. This can include costs associated with temporary housing, meals, and other necessary expenses beyond the homeowner's normal living costs.

This coverage is crucial because it ensures that homeowners can maintain a reasonable standard of living while they are displaced from their home. It alleviates financial strain during what can be a stressful and challenging time. Understanding this aspect of homeowners insurance helps policyholders grasp the full extent of their coverage options and the support available to them in times of need.